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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $59,500, has a 5-year life, and has an annual OCF (after tax) of $10,500
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $59,500, has a 5-year life, and has an annual OCF (after tax) of $10,500 per year. The Keebler CookieMunster costs $92,500, has a 7-year life, and has an annual OCF (after tax) of $8,500 per year.
If your discount rate is 13 percent, what is each machines EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Pillsbury | $ |
Keebler | $ |
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