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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $72,000, has a 5-year life, and has an annual OCF (after tax) of $11,700
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $72,000, has a 5-year life, and has an annual OCF (after tax) of $11,700 per year. The Keebler CookieMunster costs $98,500, has a 7-year life, and has an annual OCF (after tax) of $9,700 per year. If your discount rate is 13 percent, what is each machines EAC?
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