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Cracker Baker uses specialized ovens to bake its bread. One oven costs $698,000 with a...

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Accounting

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Cracker Baker uses specialized ovens to bake its bread. One oven costs $698,000 with a 4 year life and incurs pretax operating costs of $81,000 per year. The oven requires initial net working capital investment of $62,000, which will be fully recovered at the end of the project. In addition, the oven follows a straight- line depreciation and will be fully depreciated with the expected salvage value of zero. Under the tax rate of 30%, find the equivalent annual cost of an oven with 13% required rate of return. O a. -$ 202,637.80 b. -$211,873.55 O c. -$247,073.55 O d. -$249,322.80 e. None of above

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