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You are evaluating two different silicon wafer milling machines. The Techron I costs $291,000, has a three-year life, and has pretax operating costs of $80,000
You are evaluating two different silicon wafer milling machines. The Techron I costs $291,000, has a three-year life, and has pretax operating costs of $80,000 per year. The Techron Il costs $505,000, has a five-year life, and has pretax operating costs of $47,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $57,000. If your tax rate is 21 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.) Book rences Techron! Techron 11 Which machine do you prefer? Techroni Techron 11
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