Question: You are the project manager for Becker Enterprises, LTD. and have been asked to analyze two alternatives for the company's newest plastics division. The two

You are the project manager for Becker Enterprises, LTD. and have

You are the project manager for Becker Enterprises, LTD. and have been asked to analyze two alternatives for the company's newest plastics division. The two alternatives, A and B, 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: (Marks: 10) a. Calculate each project's EAC, given a 10% discount rate. b. Which of the alternatives do you think the company should select and why

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