Question
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $70,500, has a 5-year life, and has an annual OCF (after tax) of $11,400
| You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $70,500, has a 5-year life, and has an annual OCF (after tax) of $11,400 per year. The Keebler CookieMunster costs $97,000, has a 7-year life, and has an annual OCF (after tax) of $9,400 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 | $ |
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Short Term Financial Management
Authors: Terry S. Maness, John T. Zietlow
3rd Edition
0324202938, 978-0324202939
