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You are evaluating two different silicon wafer milling machines. The Techron I costs $222,000, has a three-year life, and has pretax operating costs of $57,000

image text in transcribedYou are evaluating two different silicon wafer milling machines. The Techron I costs $222,000, has a three-year life, and has pretax operating costs of $57,000 per year. The Techron II costs $390,000, has a five-year life, and has pretax operating costs of $30,000 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of $34,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute the EAC for both machines. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

You are evaluating two different silicon wafer milling machines. The Techron I costs $222,000, has a three- year life, and has pretax operating costs of $57,000 per year. The Techron ll costs $390,000, has a five year life, and has pretax operating costs of $30,000 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of S34,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute the EAC for both machines. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EN Techron I TechronII Which machine do you prefer? O Techron II O Techron

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