Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2ND TIME POSTING THIS QUESTION, THE FIRST ANSWERS ARE INCORRECT. You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has

image text in transcribed

2ND TIME POSTING THIS QUESTION, THE FIRST ANSWERS ARE INCORRECT.

You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has a 3-year life, and has pretax operating costs of $77,000 per year. The Techron Il costs $490,000, has a 5-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $54,000. If your tax rate is 23 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Techron 138,504.44 133,790.07 Techron lI Which machine do you prefer? Techron TechronI You are evaluating two different silicon wafer milling machines. The Techron I costs $282,000, has a 3-year life, and has pretax operating costs of $77,000 per year. The Techron Il costs $490,000, has a 5-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $54,000. If your tax rate is 23 percent and your discount rate is 10 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Techron 138,504.44 133,790.07 Techron lI Which machine do you prefer? Techron TechronI

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Management

Authors: Cheol S. Eun, Bruce G.Resnick

6th Edition

71316973, 978-0071316972, 78034655, 978-0078034657

More Books

Students also viewed these Finance questions