Question: You are evaluating two different cookie - baking ovens. The Pillsbury 7 0 7 costs $ 5 9 , 0 0 0 , has a

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 machines EAC?

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