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You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 6 4 , 0 0 0 , has a three
You are evaluating two different silicon wafer milling machines.
The Techron I costs $ has a threeyear life, and has pretax
operating costs of $ per year. The Techron II 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 $
If your tax rate is percent and your discount rate is percent,
compute the EAC for both
machines.Your answers should be a
negative value and indicated by a minus
sign.Do not round intermediate calculations
and round your answers to decimal places, eg
Please show work using financial calculator
You are evaluating two different silicon wafer milling machines. The Techron I costs $ has a threeyear life, and has pretax operating costs of $ per year. The Techron II costs $ has a fiveyear life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the project's life and assume a salvage value of $ If your tax rate is percent and your discount rate is 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 decimal places, eg
Answer is complete but not entirely correct.
tableTechron I,$
A project has the following estimated data: Price $ per unit; variable costs $ per unit; fixed costs $; required return percent; Initial investment $; life six years.
a Ignoring the effect of taxes, what is the accounting breakeven quantity? Do not round Intermediate calculations and round your answer to decimal places, eg
b What is the cash breakeven quantity? Do not round Intermedlate calculations and round your answer to decimal places, eg
c What is the financial breakeven quantity? Do not round Intermediate calculations and round your answer to decimal places, eg
d What is the degree of operating leverage at the financial breakeven level of output? Do not round intermedlate calculations and round your answer to decimal places, eg
Answer is complete but not entirely correct.
tablea Accounting breakeven quantity,
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