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You are evaluating two different cookie - baking ovens. The Pillsbury 7 0 7 costs $ 7 2 , 0 0 0 , has a

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $72,000, has a 5-year life, and has an annual operating cash flow (after-tax) of -$11,700 per year. The Keebler CookieMunster costs $98,500, has a 7-year life, and has an annual OCF (aftertax) of -$9,700 per year.
If your discount rate is 13 percent, what is each machine's EAC?
Note: Negative amounts should be indicated by a minus sign.
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