You are evaluating two different silicon wafer milling machines. The Techron | costs $255,000, has a...

Transcribed Image Text:

You are evaluating two different silicon wafer milling machines. The Techron | costs $255,000, has a three-year life, and has pretax operating costs of $68,000 per year. The Techron Il costs $445,000, has a five-year life, and has pretax operating costs of $41,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $45,000. If your tax rate is 24 percent and your discount rate is 13 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. 154.872.44 69 $ 166,553.71 Techron I $ Techron II Which machine do you prefer? Techron I Techron II 13 You are evaluating two different silicon wafer milling machines. The Techron | costs $255,000, has a three-year life, and has pretax operating costs of $68,000 per year. The Techron Il costs $445,000, has a five-year life, and has pretax operating costs of $41,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $45,000. If your tax rate is 24 percent and your discount rate is 13 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. 154.872.44 69 $ 166,553.71 Techron I $ Techron II Which machine do you prefer? Techron I Techron II 13