Which pizza-baking oven would you select and why

Reference no: EM13224778

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

150% DB

Reference no: EM13224778

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