Evaluating two different cookie-baking ovens

Reference no: EM131971798

Question: 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? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Pillsbury 707__________$

Keebler Cookie Munster ____________$

Reference no: EM131971798

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