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P11-4 (similar to) Question Help (Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a...

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P11-4 (similar to) Question Help (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 $85,000 to purchase, while alternative B will cost only $55,000. 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.) nco (Related to Checkpoint 11.2) (Calculating EAC) Barry Boswell is a financial analyst for Dossman Metal Works and he is ar es, de A and B beld B will i Data Table only $55,00 tax cos for the two a. Calculate b. Which of Year Alternative A Alternative B a. Alternativ $(55,000) (6,500) (6,500) (6,500) $(85,000) (21,000) (21,000) (21,000) (21,000) (21,000) (21,000) (21,000) Print Done Enter your ! parts remaining Clear All Check

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