$4($Calculating EAC$)($Related to Checkpoint $11\mathrm{.}2$ on page $370)$ Barry Boswell is a financial analyst for Doss man Metal Works, Inc., and he is analyzing two alternative configurations for the firm$$s new plasma cutter shop. The two alternatives, denoted A and B below, will perform the same task, but alternative A will cost $$80,000$ 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:

Alternative B

$0$ $$(80,000)$ $$(55,000)$

$1(20,000)(6,000)$

$2(20,000)(6,000)$

$3(20,000)(6,000)$

$4(20,000)$

$5(20,000)$

$6(20,000)$

$7(20,000)$

a$.$ Calculate each project$$s EAC, given a $10$ percent discount rate.

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

respond in simple formula not excel answer questions a and b