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 =

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5EB: A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment...
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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 =
 
 
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