Evaluating two different cookie-baking ovens

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Reference no: EM132034052

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,500, has a 5-year life, and has an annual OCF (after tax) of –$12,000 per year. The Keebler CookieMunster costs $100,000, has a 7-year life, and has an annual OCF (after tax) of –$10,000 per year.

If your discount rate is 13 percent, what is each machine’s EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

Reference no: EM132034052

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