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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 $95.000 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 10 percent b. Which of the alternatives do you think Barry should select? Why? a. Alternative A's EAC at a discount rate of 10% is $ . (Round to the nearest cent.) P11-6 (similar to) Question Help (Related to Checkpoint 11.4) (IRR calculation) What is the internal rate of return for the following project: An initial outlay of $9,000 resulting in a single cash inflow of $23,224 in 11 years. The internal rate of return for the project is %. (Round to the nearest whole percent.) Moreover, the two alternatives will have very different cash flows and useful lives. The after-tax costs for the 1 Data Table Year Alternative A Alternative B $(95,000) (16,000) (16,000) (16,000) (16,000) (16,000) (16,000) (16,000) $(55,000) (6,500) (6,500) (6,500) Check | Print Done ole * @ New

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