12-4 EAC Approach

You are eveluating two different cookie-baking ovens.The Pillsbury 707 costs $57,000, has a five-year life, and has an annual OCF of -$10,000 pre year. The Keebler CookieMunster costs ,000, has a seven-year life. and has an annual OCF of -$8000 per year. If your discount rate is 12 percent, what is each machine’s EAC?

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