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(Related to Checkpoint 11.2) (Calculating EAC) Barry Bowel is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two worative configurations for

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(Related to Checkpoint 11.2) (Calculating EAC) Barry Bowel is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two worative configurations for the few's new plasma cuter shop. The two alternatives, denoted and below, wil perform the same task, but alternativeAwil.com 590,000 to purchase, while otomotive will cost only $95.000. Moreover, the two females will have very different cash flows and seves The er tax costs for the two projects are as follows: Calculate each proje EAC, on a discount we of 11 percent b. Which of the alternatives do you think Barry should see Why? Alternative A's EAC at a discount rate of 11% (found to the nearest cent) Alternative B's EAC at a discount rate of 11% (Round to the nearest cant) b. Which of the alternatives do you think Barry should se Why? (Select the best choice below) O A. Alternative should be selected because it has the highest NPV OB. Alternative should be selected because its equivalent annual cost is less per year than the annual equivalent cool for Amative A OC. This cannot be determined from the information provided OD. Atomative A should be selected because its equivalent annual cost is less per year than the annual equivalent cost for Alamative B. Cick to select your answers) (Related to Checkpoint 112) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works, Inc. and he is analyzing two alternative configurations for the 's new plasma cute shop The two altomaties denoted and below, will perform the same task, but alternative A will cost $90,000 to purchase, while alternative will cost only $55.000 Moreover, the two allematices will have very different cash flows and lives. The after tax costs for the two projects are as follows a. Calculate each projects EAC, given a discount rate of 11 percent 1. Which of the alteratives do you think Barry should select? Why? 2. Aternative A's IC ta decourt rate of 115 Round to Aternatives EAC at a discount cate of 115 Round to the Data Table 1. Which of the alternatives do you think Barry shoulder? Why? OA Alternative should be selected because it has the highest Year Alternative Alternative OB. Alternative should be selected because its equivalent and 0 90,000) ${55.000) OC. This cannot be determined from the information provided (18,000) 2 (18,000) 15,000) OD. Alterative A should be selected because its equivalentang 3 (18.000) 15.000) (18.000) 5 (18.000) (18,000) 7 (18.00) 1 15.000) Click to select your answers) Print Done

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