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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
$210,000, has a three-year life, and has pretax operating costs of $53,000 per year. The
Techron II costs $370,000, has a five-year life, and has pretax operating costs of
$26,000 per year. For both milling machines, use straight-line depreciation to zero over
the project's life and assume a salvage value of $30,000. If your tax rate is 25 percent
and your discount rate is 8 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 2 decimal places, e.g.,32.16.)
Which machine should you choose?
Techron II
Techron I
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