Different cookie-baking ovens

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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $70,500, has a 5-year life, and has an annual OCF (after tax) of –$11,400 per year. The Keebler CookieMunster costs $97,000, has a 7-year life, and has an annual OCF (after tax) of –$9,400 per year.

If your discount rate is 13 percent, what is each machine’s EAC?

Reference no: EM131332086

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