Extracted text: (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 andB below, will perform the same task, but alternative A will cost $75,000 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 11 percent. b. Which of the alternatives do you think Barry should select? Why?
Extracted text: Data Table Year Alternative A Alternative B S(75,000) (16,000) (16,000) (16,000) (16,000) (16,000) (16,000) (16,000) (Click on the icon O in order to copy its contents into a spreadsheet.) S(65,000) (7,000) (7,000) (7,000) 1 3 4 6 7 Print Done