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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,000, has a 5-year life, and has an annual OCF (after- tax) of
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,000, has a 5-year life, and has an annual OCF (after- tax) of -$10,000 per year. The Keebler CookieMunster costs $90,000, has a 7-year life, and has an annual OCF (after-tax) of -$8,000 per year. If your discount rate is 12 percent, what is each machine's EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Pillsbury 707 Keebler CookieMunster EAC
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