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Radio Station CJXT is considering replacing its old, fully depreciated sound mixer. Two new models are available. Mixer X has a cost of $575,000, a

image text in transcribed Radio Station CJXT is considering replacing its old, fully depreciated sound mixer. Two new models are available. Mixer X has a cost of $575,000, a five-year expected life, and after-tax cash flow savings of $150,000 per year. Mixer Y has a cost of $725,000, an eightyear life, and after-tax cash flow savings of $160,000 per year. No new technological developments are expected. The cost of capital is 14 percent. a. Calculate the EAC for mixer X and mixer Y. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) b. Should CJXT replace the old mixer with X or Y ? Mixer X Mixer Y None

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