Question
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$9,700 per year.
If your discount rate is 13 percent, what is each machines EAC?(Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Pillsbury 707$
Keebler CookieMunster
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
