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Calculating EAC [ LO 4 ] You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 6 5 , 0
Calculating EAC LO You are evaluating two different silicon wafer milling machines. The Techron I costs $ has a threeyear life, and has pretax operating costs of $ per year. The Techron II costs $ has a fiveyear life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the project's life and assume a salvage value of $ If your tax rate is percent and your discount rate is percent, compute the EAC for both machines. Which do you prefer? Why?
Calculating EAC LO You are evaluating two different silicon wafer milling machines. The Techron I costs $ has a threeyear life, and has pretax operating costs of $ per year. The Techron II costs $ has a fiveyear life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the project's life and assume a salvage value of $ If your tax rate is percent and your discount rate is percent, compute the EAC for both machines. Which do you prefer? Why?
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