(Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the firm's new plasma cutter shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost $90,000 to purchase, while alternative B will cost only $65,000. Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the two projects are as follows: a. Calculate each project's EAC, given a discount rate of 9 percent. b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 9% is ? (Round to the nearest cent.) Alternative B's EAC at a discount rate of 9% is $ (Round to the nearest cent.) \begin{tabular}{|ccc|} \hline Year & Alternative A & Alternative B \\ 0 & $(90,000) & $(65,000) \\ 1 & (16,000) & (4,000) \\ 2 & (16,000) & (4,000) \\ 3 & (16,000) & (4,000) \\ 4 & (16,000) & \\ 5 & (16,000) & \\ 6 & (16,000) & \\ 7 & (16,000) & \\ \hline \end{tabular}