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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 3

You are evaluating two different silicon wafer milling machines. The Techron I costs
$264,000, has a 3-year life, and has pretax operating costs of $71,000 per year. The
Techron II costs $460,000, has a 5-year life, and has pretax operating costs of $44,000
per year. For both milling machines, use straight-line depreciation to zero over the
project's life and assume a salvage value of $48,000. If your tax rate is 22 percent and
your discount rate is 12 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.)
Answer is complete but not entirely correct.
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