Problem 12-4 EAC Approach (LG12-8)

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 =