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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,500, has a 5-year life, and has an annual operating cash flow (after-tax) of
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,500, has a 5-year life, and has an annual operating cash flow (after-tax) of $10,700 per year. The Keebler CookieMunster costs $93,500, has a 7-year life, and has an annual OCF (after-tax) of $8,700 per year.
If your discount rate is 11 percent, what is each machines EAC?
Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
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