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You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 1 0 , 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 project's 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. Your answer
should be a negative value and indicated by a minus sign. Do not round intermediate
calculations and round your answers to decimal places, eg
Which machine should you choose?
Techron II
Techron I
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