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You are evaluating two different silicon wafer milling machines. - The Techron I costs $246,000, has a 3-year life, and has pretax operating costs of

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You are evaluating two different silicon wafer milling machines. - The Techron I costs $246,000, has a 3-year life, and has pretax operating costs of $65,000 per year. - The Techron Il costs $430,000, has a 5-year life, and has pretax operating costs of $38,000 per year. - For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $42,000. - It your tax rate is 21 percent and your discount rate is 10 percent, compute the EAC for both machines. Which machine do you prefer? $123,026;119,958; Prefer Techron II $123.026;119.958, Prefer Techron I -\$114.791; 135,691, Prefor Techron I $114.791;$135,691. Prefer Techron

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