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You are evaluating two different silicon wafer milling machines. The Techron I cost $279,000, has a three-year life, and has pretax operating costs of $76,000
You are evaluating two different silicon wafer milling machines. The Techron I cost $279,000, has a three-year life, and has pretax operating costs of $76,000 per year. The Techron II costs $485,000, has a five-year life, and has pretax operating costs o $43,000 per year. For both milling machines, use straight-line depreciation to zero ove the project's life and assume a salvage value of $53,000. If your tax rate is 22 percen and your discount rate is 13 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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