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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

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

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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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 Cookie Munster 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 27,923.80 x
Transcribed Image Text: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 Cookie Munster 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 27,923.80 x
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