You are evaluating two different silicon wafer milling machines. The Techron I costs

$$265,000,$ has a three$-$year life, and has pretax operating costs of $$74,000$ per year. The

Techron II costs $$445,000,$ has a five$-$year life, and has pretax operating costs of $$47,000$

per year. For both milling machines, use straight$-$line depreciation to zero over the

project's life and assume a salvage value of $$35,000.$ If your tax rate is $22$ percent and

your discount rate is $10$ 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 $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Which do you prefer?

Techron II

Techron I