Evaluating two different cookie-baking ovens

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Reference no: EM131920812

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $59,000, has a 5-year life, and has an annual OCF (after-tax) of –$10,400 per year. The Keebler CookieMunster costs $92,000, has a 7-year life, and has an annual OCF (after-tax) of –$8,400 per year. If your discount rate is 11 percent, what is each machine’s EAC?

Reference no: EM131920812

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