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You are evaluating two different silicon wafer milling machines. The Techron I $270,000, has a 3-year life, and has pretax operating costs of $73,000 per
You are evaluating two different silicon wafer milling machines. The Techron I $270,000, has a 3-year life, and has pretax operating costs of $73,000 per year Techron II costs $470,000, has a 5-year life, and has pretax operating costs of $4 per year. For both milling machines, use straight-line depreciation to zero ove project's life and assume a salvage value of $50,000. If your tax rate is 24 percen your discount rate is 10 percent, compute the EAC for both machines. (A neg answer should be indicated by a minus sign. Do not round intermediate calcula and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Which machine do you prefer? Techron II Techron
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