You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $59,000, has a 5-year life, and has an annual OCF (after- tax) of -$10,400 per year. The Keebler CookieMunster costs $92,000, has a 7-year life, and has an annual OCF (after-tax) of -$8,400 per year. If your discount rate is 11 percent, what is each machine's EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Pillsbury 707 Keebler CookieMunster $ $ EAC 26,363.65 x 27,923.80 x
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- You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $60,500, has a 5-year life, and has an annual OCF (after-tax) of –$10,700 per year. The Keebler CookieMunster costs $93,500, has a 7-year life, and has an annual OCF (after-tax) of –$8,700 per year. If your discount rate is 11 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 = Cookie Monster =You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,000, has a five-year life, and has an annual OCF (after-tax) of -$10,000 per year. The Keebler Cookie Munster costs $90,000, has a seven-year life, and has an annual OCF (after-tax) of -$8,000 per year. If your discount rate is 12 percent, what is each machine's EAC?You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $57,500, has a 5-year life, and has an annual operating cash flow (after-tax) of –$10,100 per year. The Keebler CookieMunster costs $90,500, has a 7-year life, and has an annual OCF (after-tax) of –$8,100 per year. If your discount rate is 11 percent, what is each machine’s EAC? Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
- You are evaluating two different machines. Machine A costs $10,000, has a five-year life, and has an annual OCF (after-tax) of -$2,500 per year. Machine B costs $15,000, has a seven-year life, and has an annual OCF (after-tax) of -$2,000 per year. If your discount rate is 14 percent, using EAC which machine would you choose? O Machine A O All of these choices are correct. ONeither machine A nor B O Machine B DYou own a bakery that operates 365 days per year, and want to purchase a commercial oven for $3000, which includes free delivery and installation. The manufacturer says it should last for 10 years. Operating and maintenance cost for the oven is $1400 per year. To offset these, you are estimating that you will be able to make $45 per day after eliminating cost of ingredients and other overhead. Use Present Worth method to see if you should buy the oven if your MARR is 15%.A precision lathe costs $11,300 and will cost $26,500 a year to operate and maintain. If the discount rate is 12% and the lathe will last for 4 years, what is the equivalent annual cost of the tool? (Enter your answer as positive value. Round your answer to the nearest cent.) The equivalent annual cost $
- Cal Construction Company must choose between two types of cranes. Crane X costs $600,000, will last for 5 years, and will require $60,000 in maintenance each year. Crane Y costs $800,000 and will last for 7 years and will require $30,000 in maintenance each year. Maintenance costs for cranes X and Y are incurred at the end of each year. The appropriate discount rate is 10% per year. Which machine should the company purchase? Crane X as EAC is $218,278.49 Crane X as EAC is $827,447.21 Crane Y as EAC is $946,052.56 Crane Y as EAC is $194,324.40Econo-Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20%. a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.Econo - Cool air conditioners cost $390 to purchase, result in electricity bills of $168 per year, and last for 5 years. Luxury Air models cost $590, result in electricity bills of $136 per year, and last for 8 years. The discount rate is 23%. a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. What is the equivalent annual cost of the Luxury Air model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Which model is more cost-effective? multiple choice 1 Econo-Cool Luxury Air d-1. Now you remember that the inflation rate is expected to be 10% per year for the foreseeable future. What are the equivalent annual cost of the Econo - Cool and Luxury Air model? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. d-2, Which model is more cost- effective? multiple choice 2 Econo - Cool Luxury Air
- A fleet manager must choose between two trucks to purchase for a company's fleet. The company uses an interest rate of 12% and will keep either truck for 3 years. Truck A costs $30,000 and has a market value of $17,000 after 3 years. Truck B costs $32,000 and has a market value of $21,000 after 3 years. Determine the equivalent uniform annual cost (EUAC) for the truck the fleet manager should buy. Express your answer as a positive number is $ to the nearest $10.Econo Cool air conditioners cost $380 to purchase, result in electricity bills of $166 per year, and last for 5 years. Luxury Air models cost $580, result in electricity bills of $132 per year, and last for 8 years. The discount rate is 20% a. What is the equivalent annual cost of the Econo-Cool model? Note: Do not round intermediate calculations. Round your answer to 2 decimal places..Your company is looking at purchasing a front-end loader at a cost of $120,000. The loader can be billed out at $107.00 per hour. It costs $30.00 per hour to operate the front-end loader and $37.00 per hour for the operator. The useful life of the equipment is five years. Using 1,200 billable hours per year and a MARR of 10%, determine the payback period with interest for the front-end loader. 2.89 4.15 4.52 3.74 3.02 Please write to text formet but don't copy paste