Question
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $72,500, has a 5-year life, and has an annual OCF (after-tax) of $11,800 per
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $72,500, has a 5-year life, and has an annual OCF (after-tax) of $11,800 per year. The Keebler CookieMunster costs $99,000, has a 7-year life, and has an annual OCF (after-tax) of $9,800 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.)
EAC | |
Pillsbury 707 | ? |
Keebler CookieMunster | ? |
Note: The following answers are INCORRECT, please do not give them as answers.
Pillsbury 707 EAC: $-22,954.32
Keebler CookieMunster EAC: $-21,786.15
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