Question: Question 8 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 8 1 pts Your boss asks you to evaluate the purchase of a new battery-operated toaster for his restaurant chain. The toaster (BT] costs $22 per unit, and has an estimated useful life of four years. The toaster requires batteries once a week yielding an annual operating cost of $96 per year; salvage value of both toaster and batteries is $12. The alternative is to purchase an electric toaster [ET] that will last seven years and costs $150. The estimated annual electric bill for this toaster is $60, and it has an expected salvage value of $15. The company anticipates purchase of 10000 toasters for eternity. Assume a tax rate of 38% and a WACC of 13%. If toaster BT's annual battery costs decrease by $4 and ET's toaster cost decrease by $4 which toaster would you recommend now? OBT: AEC $60.81 none of them ET: AEC $60.81 O ET: AEC $61.39 OBT: AEC $61.39
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