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You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a 3-year life, and has pretax operating costs of $37,000
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a 3-year life, and has pretax operating costs of $37,000 per year. The Techron II costs $291,000, has a 5-year life, and has pretax operating costs of $18,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $20,000. If your tax rate is 32 percent and your discount rate is 10 percent. The Techron I has an EAC of $, while the Techron II has an EAC of $ . You prefer Techron . (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))
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