Evaluating two different cookie-baking ovens

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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $69,500, has a 5-year life, and has an annual OCF (after tax) of –$11,200 per year. The Keebler CookieMunster costs $96,000, has a 7-year life, and has an annual OCF (after tax) of –$9,200 per year.

If your discount rate is 12 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 CookieMunster               $ 

Reference no: EM13939382

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