(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 $95,000 to purchase, while alternative B will cost only $50,000. 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	-95,000	-50,000
1	-21,000	-6,500
2	-21,000	-6,500
3	-21,000	-6,500
4	-21,000
5	-21,000
6	-21,000
7	-21,000

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?