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Find what is each machine EAC

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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,500, has a 5-year life, and has an annual OCF (after-tax) of -$10,100 per year. The Keebler CookieMunster costs $90,500, has a 7-year life, and has an annual OCF (after-tax) of -$8,100 per year.

Problem 1: If your discount rate is 11 percent, what is each machine's EAC?

Reference no: EM132701508

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