Question: Eib & Wings - R- Us is considering the purchase of a new smoker over for cooking barbecue, ribs, and wings. It is looking at

Eib & Wings - R- Us is considering the purchase of a new smoker over for cooking barbecue, ribs, and wings. It is looking at two different ovens. The first is a relatively standard smoker and would cost $50,000, last for 8 years and produce annual cash flows of $16,000 per year. The alternative is the deluxe, award winning Smoke alator, which cost $78,000 and because of its patented humidity control, produces the moistest, tastiest barbecue in the world. The Smoke- Alator would last for 11 years and produce cash flows of $23,000 per year. Assuming a required rate of return of 10 percent on both projects, compute their equivalent annual annuities

The EAA of the standard smoker is $_____ ( Round to the nearest dollar)

The EAA of the smoker- Alator is $____ ( Round to the nearest dollar)

Rib & Wing- R- Us should purchase the _________

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