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You are evaluating two different silicon wafer milling machines. The Techron I costs $ 2 3 7 , 0 0 0 , has a three

You are evaluating two different silicon wafer milling machines. The Techron I costs
$237,000, has a three-year life, and has pretax operating costs of $62,000 per year. The
Techron II costs $415,000, has a five-year life, and has pretax operating costs of $35,000
per year. For both milling machines, use straight-line depreciation to zero over the
project's life and assume a salvage value of $39,000. If your tax rate is 21 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.,3216.)
Which machine should you choose?
Techron 1
Techron II
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