Question: You are evaluating two different cookie - baking ovens. The Pillsbury 7 0 7 costs $ 5 8 , 0 0 0 , has a

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $58,000, has a 5-year life, and has an annual operating cash flow (after-tax) of $10,200 per year. The Keebler CookieMunster costs $91,000, has a 7-year life, and has an annual OCF (after-tax) of $8,200 per year.
If your discount rate is 13 percent, what is each machines EAC?

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