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You are evaluating two different silicon wafer milling machines. The Techron | costs $270,000, has a three-year life, and has pretax operating costs of $73,000
You are evaluating two different silicon wafer milling machines. The Techron | costs $270,000, has a three-year life, and has pretax operating costs of $73,000 per year. The Techron Il costs $470,000, has a five-year life, and has pretax operating costs of $46,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $50,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute the EAC for both machines. (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).) EAC Techroni Techron 11 Which machine should you choose? O Techron II O Techron! A project that will improve the manufacturing efficiency of a firm but will generate no additional sales is referred to as a(n) project. Multiple Choice sunk cost opportunity cost cost-cutting revenue-cutting revenue-generating
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