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2 You are evaluating two different silicon wafer milling machines. The Techron I costs $274,500, has a three-year life, and has pretax operating costs of
2 You are evaluating two different silicon wafer milling machines. The Techron I costs $274,500, has a three-year life, and has pretax operating costs of $45,300 per year. The Techron Il costs $377,500, has a five-year life, and has pretax operating costs of $48,300 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $21,500. Assume the tax rate is 35 percent and the discount rate is 12 percent. 3 points eBook Requirement 1: Compute the EAC for both the machines. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16) Print EAC Techron! Techron 11 $ References Requirement 2: Which machine would you prefer? Techron 11
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