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Problem 10-19 Calculating EAC (L04] You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has
Problem 10-19 Calculating EAC (L04] You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has pretax operating costs of $70,000 per year. The Techron ll costs $455,000, has a five-year life, and has pretax operating costs of $43,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $47,000. If your tax rate is 21 percent and your discount rate is 11 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.) Techron! Techron 11 Which machine do you prefer? Techron! Techron
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