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You are considering two different silicon wafer milling machines. The Techron I costs $210,000, has a 3 year life and pre-tac operating costs of $34,000

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You are considering two different silicon wafer milling machines. The Techron I costs $210,000, has a 3 year life and pre-tac operating costs of $34,000 per year. The Techron Il costs $320,000, has a five-year life and pre-tax operating costs of $23,000 per year. Both machines we in Class 9 (20% CCA rate). Assume a salvage value of $20,000. The firm's tax rate is 35% and its cost of capital is 14%. Which machine is preferable it the machines are replaced when they wear out? Which is preferred it the machines are not replaced? What is the NPV for Techrnon i? What is the NPV for Techron li? What is the Yearly NPV for Technon i? What is the Yearly NPV for Techron ii? If the machine were not replaced they would choose With replacement you would choose

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