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Problem 10-17 Calculating EAC [LO4] You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three- year life, and
Problem 10-17 Calculating EAC [LO4] You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three- year life, and has pretax operating costs of $54,000 per year. The Techron Il costs $375,000, has a five- year life, and has pretax operating costs of $27,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $31,000. If your tax rate is 30 percent and your discount rate is 9 percent, compute the EAC for both machines. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e-g, 32.16.) Techron I Techron II Which machine do you prefer? O Techron lII O Techron l
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