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You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $46,800

You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three-year life, and has pretax operating costs of $46,800 per year. The Techron II costs $350,000, has a five-year life, and has pretax operating costs of $54,900 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of $29,000. Assume the tax rate is 40 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 I $
Techron II $

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