You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,000, has a 5-year life, and has an annual OCF (after- tax) of -$11,900 per year. The Keebler Cookie Munster costs $99,500, has a 7-year life, and has an annual OCF (after-tax) of -$9,900 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 Keebler CookieMunster EAC
You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,000, has a 5-year life, and has an annual OCF (after- tax) of -$11,900 per year. The Keebler Cookie Munster costs $99,500, has a 7-year life, and has an annual OCF (after-tax) of -$9,900 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 Keebler CookieMunster EAC
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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Subject:- finance
Transcribed Image Text:You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,000, has a 5-year life, and has an annual OCF (after-
tax) of -$11,900 per year. The Keebler CookieMunster costs $99,500, has a 7-year life, and has an annual OCF (after-tax) of -$9,900
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
Keebler Cookie Munster
EAC
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