Question
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,000, has a 5-year life, and has an annual OCF (after tax) of $10,600
| You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,000, has a 5-year life, and has an annual OCF (after tax) of $10,600 per year. The Keebler CookieMunster costs $93,000, has a 7-year life, and has an annual OCF (after tax) of $8,600 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.) |
| Pillsbury 707 | $ |
| Keebler CookieMunster | $ |
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
2nd Edition
0133001873, 978133001877
