State any important assumptions you make in your analysis

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Reference no: EM13154292

Mamma Mia's Pizza must replace its current pizza-baking oven. The two best alternatives are Crispy Cruster and Easy Baker. Assume an income tax rate of 50% and MARR after-taxes of 10% per year. Which pizza-baking oven would you select and why? State any important assumptions you make in your analysis.

	Crispy Cruster	Easy Baker
Initial Cost	$24000	$33000
Annual Costs	$9000	$6000
Salvage Value	$6000	$5000
Useful Life	3 years	4 years
Depreciation Method	SL	150% DB

Reference no: EM13154292

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