Question: Question 12 1 pts Your boss asks you to evaluate the purchase of a new battery-operated toaster for his restaurant chain. The toaster (BT] costs

Question 12 1 pts Your boss asks you to evaluate the purchase of a new battery-operated toaster for his restaurant chain. The toaster (BT] costs $75 per unit, and has an estimated useful life of four years. The toaster requires batteries once a week yielding an annual operating cost of $97 per year; salvage value of both toaster and batteries is $15. The alternative is to purchase an electric toaster [ET] that will last six years and costs $280. The estimated annual electric bill for this toaster is $56, and it has an expected salvage value of $50. If the company anticipates purchase of 10000 toasters for eternity, which model should you recommend? Assume a tax rate of 25% and a WACC of 10%. OBT: AEC $89.3 O none of them OBT: AEC $89.76 O ET: AEC $89.76 O ET: AEC $89.3 Question 12 1 pts Your boss asks you to evaluate the purchase of a new battery-operated toaster for his restaurant chain. The toaster (BT] costs $75 per unit, and has an estimated useful life of four years. The toaster requires batteries once a week yielding an annual operating cost of $97 per year; salvage value of both toaster and batteries is $15. The alternative is to purchase an electric toaster [ET] that will last six years and costs $280. The estimated annual electric bill for this toaster is $56, and it has an expected salvage value of $50. If the company anticipates purchase of 10000 toasters for eternity, which model should you recommend? Assume a tax rate of 25% and a WACC of 10%. OBT: AEC $89.3 O none of them OBT: AEC $89.76 O ET: AEC $89.76 O ET: AEC $89.3
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