Question
Can someone help me with the following question? Thanks very much Two different machines are being evaluated . Machine I costs $270,000, has a three-year
Can someone help me with the following question? Thanks very much
Two different machines are being evaluated . Machine I costs $270,000, has a three-year life, and has pre-tax operating costs of $69,000 per year. Machine II costs $475,000, has a five-year life, and has pre-tax operating costs of $36,000 per year. Both milling machines are in Class 8 (CCA rate of 20% per year). Assume a salvage value of $45,000. If your tax rate is 35% and your discount rate is 10%, compute the EAC for both machines:
These answers are wrong by the way: 113080.64 , 110664.04
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