Question
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $68,000, has a 5-year life, and has an annual OCF (after tax) of -$11,000
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $68,000, has a 5-year life, and has an annual OCF (after tax) of -$11,000 per year. The Keebler CookieMunster costs $95,000, has a 7-year life, and has an annual OCF (after tax) of-$9,000 per year.
If your discount rate is 11 percent, what is each machine's EAC?(Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Pillsbury 707$
Keebler CookieMunster
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
2nd Edition
0073530670, 9780073530673
