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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 machines EAC?

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