Question
You are evaluating two different silicon wafer milling machines. The Techron I costs $290,000, has a three-year life, and has pretax operating costs of $67,000
You are evaluating two different silicon wafer milling machines. The Techron I costs $290,000, has a three-year life, and has pretax operating costs of $67,000 per year. The Techron II costs $510,000, has a five-year life, and has pre-tax operating costs of $35,000 per year. Both milling machines are in Class 8 (CCA rate of 20 percent per year). Assume a salvage value of $40,000. If your tax rate is 35 percent and your discount rate is 10 percent, compute the EAC for both machines. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) |
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