Question

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,500, has a 5-year life,...

You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $73,500, has a 5-year life, and has an annual OCF (after tax) of –$12,000 per year. The Keebler CookieMunster costs $100,000, has a 7-year life, and has an annual OCF (after tax) of –$10,000 per year.

If your discount rate is 13 percent, what is each machine’s EAC? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $46,800 per year. The Techron II costs $350,000, has a five-year life, and has pretax operating costs of $54,900 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $29,000. Assume the tax rate is 40 percent and the discount rate is 12 percent.    ...
You are evaluating two different silicon wafer milling machines. The Techron I costs $243,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $243,000, has a three-year life, and has pretax operating costs of $64,000 per year. The Techron II costs $425,000, has a five-year life, and has pretax operating costs of $37,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $41,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $69,000 per year. The Techron II costs $450,000, has a five-year life, and has pretax operating costs of $42,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $46,000. If your tax rate is 25 percent and your discount rate is 10 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has pretax operating costs of $70,000 per year. The Techron II costs $455,000, has a five-year life, and has pretax operating costs of $43,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $47,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a three-year life, and has pretax operating costs of $56,000 per year. The Techron II costs $385,000, has a five-year life, and has pretax operating costs of $29,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $33,000. If your tax rate is 22 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $246,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $246,000, has a three-year life, and has pretax operating costs of $65,000 per year. The Techron II costs $430,000, has a five-year life, and has pretax operating costs of $38,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $42,000. If your tax rate is 22 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $228,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $228,000, has a three-year life, and has pretax operating costs of $59,000 per year. The Techron II costs $400,000, has a five-year life, and has pretax operating costs of $32,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $36,000. If your tax rate is 24 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $270,000, has a three-year life, and has pretax operating costs of $73,000 per year. The Techron II costs $470,000, has a five-year life, and has pretax operating costs of $46,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $50,000. If your tax rate is 25 percent and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $210,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $210,000, has a three-year life, and has pretax operating costs of $53,000 per year. The Techron II costs $370,000, has a five-year life, and has pretax operating costs of $26,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $30,000. If your tax rate is 25 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a...
You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has a three-year life, and has pretax operating costs of $66,000 per year. The Techron II costs $435,000, has a five-year life, and has pretax operating costs of $39,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $43,000. If your tax rate is 22 percent and your discount rate is 11 percent, compute...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT