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You are evaluating two different silicon wafer milling machines. The Techron I costs $294.000, has a three year life, and has pretax operating costs of

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You are evaluating two different silicon wafer milling machines. The Techron I costs $294.000, has a three year life, and has pretax operating costs of $81,000 per year. The Techron Il costs $510,000, has a five-year life, and has pretax operating costs of $48.000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $58,000. If your tax rate is 22 percent and your discount rate is 10 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.9., 32.16.) Techeon Which machine do you prefer? Techron 1 Techron

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