Question
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after tax) of $11,200
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after tax) of $11,200 per year. The Keebler CookieMunster costs $96,000, has a 7-year life, and has an annual OCF (after tax) of $9,200 per year.
If your discount rate is 12 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 | $ |
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The Charles Schwab Guide To Finances After Fifty
Authors: Carrie Schwab-Pomerantz, Joanne Cuthbertson
1st Edition
0804137366, 978-0804137362
