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You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 6 5 , 0 0 0 , has a three
You are evaluating two different silicon wafer milling machines. The Techron I costs $ has a threeyear life, and has pretax operating costs of $ per year. The Techron II costs $ has a fiveyear life, and has pretax operating costs of $ per year. For both milling machines, use straightline depreciation to zero over the projects life and assume a salvage value of $ If your tax rate is percent and your discount rate is percent, compute the EAC for both machines. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg
Which do you prefer?
multiple choice
Techron II
Techron I
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