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You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $46,200

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You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $46,200 per year. The Techron Il costs $365,000, has a five-year life, and has pretax operating costs of $49,200 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $26,000. Assume the tax rate is 35 percent and the discount rate is 12 percent. Requirement 1: Compute the EAC for both the machines. (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) EAC $ Techron 1 Techron 11 Requirement 2: Which machine would you prefer? Techron 11

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