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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
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 EAC
Keebler CookieMunster EAC
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