You are evaluating two different silicon wafer milling machines. The Techron I costs $$267,000,$ has a three$-$year life, and has pretax

operating costs of $$72,000$ per year. The Techron Il costs $$465,000,$ has a five$-$year life, and has pretax operating costs of $$45,000$ per

year. For both milling machines, use straight$-$line depreciation to zero over the project's life and assume a salvage value of $$49,000.$ If

your tax rate is $24$ percent and your discount rate is $9$ percent, compute the EAC for both machines.

Note: 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$.,32\mathrm{.}16.$

Which machine should you choose?

Techron II

Techron I