You are evaluating two different silicon wafer milling machines. The Techron I costs $$246,000,$ has a three$-$year life, and has pretax

operating costs of $$65,000$ per year. The Techron II costs $$430,000,$ has a five$-$year life, and has pretax operating costs of $$38,000$ per

year. For both milling machines, use straight$-$line depreciation to zero over the project's life and assume a salvage value of $$42,000.$ If

your tax rate is $22$ percent and your discount rate is $8$ percent, compute the EAC for both machines.

Note: Your answer should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round

your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Which machine should you choose?

Techron II

Techron I