?(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 $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:

Year / Alternative A / Alternative B

0   $(85,000)   $(65,000)

1   $(16,000)   $(6,500)

2   $(16,000)   $(6,500)

3   $(16,000)   $(6,500)

4   $(16,000)  

5   $(16,000)  

6   $(16,000)  

7   $(16,000)  

a. Calculate each? project's EAC, given a discount rate of 10%

b. Which of the alternatives do you think Barry should? select? Why?

a. Alternative? A's EA) at a discount rate of 10% is ?$( ) ?(Round to the nearest? cent.)

b. Which of the alternatives do you think Barry should? select? Why?