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You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $72.000

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You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $72.000 per year. The Techron II costs $465,000, has a five-year life, and has pretax operating costs of $45.000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $49.000. If your tax rate is 23 percent and your discount rate is 13 percent, compute the EAC for both machines. (A negatlve onswer should be Indlcated by a minus sign. Do not round Intermedlate calculations and round your onswers to 2 declmal ploces, e.9., 32.16.) Which machine do you prefer? Techron 1 Techron

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