Evaluating two different cookie-baking ovens

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You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,000, has a 5-year life, and has an annual OCF (after tax) of –$10,600 per year. The Keebler CookieMunster costs $93,000, has a 7-year life, and has an annual OCF (after tax) of –$8,600 per year. If your discount rate is 12 percent, what is each machine’s EAC?

Reference no: EM131524191


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