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You are evaluating two different milling machines to replace your current aging machine. Machine A costs $ 2 3 6 , 2 4 4 ,
You are evaluating two different milling machines to replace your current aging machine. Machine A costs $ has a threeyear life, and has pretax operating costs of $ per year. Machine B costs $ has a fiveyear life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the projects life and assume a salvage value of $ Your tax rate is and your discount rate is
What is the EAC for Machine A
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