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You are evaluating two different silicon wafer milling machines. The Techron l costs $246,000, has a 3-year life, and has pretax operating costs of $65,000

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You are evaluating two different silicon wafer milling machines. The Techron l 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. If your tax rate is 21 percent and your discount rate is 10 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? Techroni Techron 11

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