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(Rolated to Chockpolnt 11.2) (Calculating EAC) Barry Boswell is a financid analyst for Dossman Motal Works, Inc. and he is analyzing two altemative configurations for

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(Rolated to Chockpolnt 11.2) (Calculating EAC) Barry Boswell is a financid analyst for Dossman Motal Works, Inc. and he is analyzing two altemative configurations for the firm's new plasma cular shop. The two alternatives, denoted A and B below, will perform the same task, but altemative A will cost $90,000 to purchase, while alternative B will cont only $50,000. Moreover, the fwo ahematives will heve very diblerent cash fows and useful lives. The ator tax conts for the wo projects are as follows: a. Caloulate each projects EAC, given a dacount rate of 12 percent. b. Which of the altematives do you thirk Barry should select? Why? Data table a. Avernative As EAC at a discount rale 12% is f (Rownd to the nearest cont)

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