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help please Octavia Bakery is planning to purchase one of the two oven models (127B and 334A). The expected cash flows for each oven are
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Octavia Bakery is planning to purchase one of the two oven models (127B and 334A). The expected cash flows for each oven are shown below. MARR is 8%/year. Which oven should be purchased? Base your EEA judgment on PW and Rate of Return Analysis. (20 pts.) Model 127B Model 334A Initial Investment $50,000 $80,000 10 5 $10,000 $0 Estimated Life End of Life Salvage Annual Income Annual Expense $19,400 $26,000 $10,000 $6,000Step by Step Solution
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