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Netanya is 14 percent. SIIOuiaNeun 10. Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs 210,000, has a three-year
Netanya is 14 percent. SIIOuiaNeun 10. Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs 210,000, has a three-year life, and has pretax operating costs of 34,000 per year. The Techron II costs 320,000, has a five-year life, and has pretax oper- ating costs of 23,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of 20,000. If your tax rate is 35 percent and your discount rate is 14 percent, compute the EAC for both machines. Which do you prefer? Why
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