Please help me answer the following questions.

1. Your company is considering a new project that will require $740,000 of new equipment at the start of the project. The equipment will have a depreciable life of 8 years and will be depreciated to a book value of $140,000 using straight-line depreciation. The cost of capital is 11 percent, and the firms tax rate is 30 percent. Estimate the present value of the tax benefits from depreciation. (Round your answer to 2 decimal places.)

2. You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,000, has a 5-year life, and has an annual OCF (after tax) of $11,100 per year. The Keebler CookieMunster costs $95,500, has a 7-year life, and has an annual OCF (after tax) of $9,100 per year.

If your discount rate is 13 percent, what is each machines EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Pillsbury 707:

Keebler CookieMunster: