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You are evoluating two different silicon wafer miling machines. The Techron 1 costs $267.000, has a three-year life. and has pretax operating costs of $12,000

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You are evoluating two different silicon wafer miling machines. The Techron 1 costs $267.000, has a three-year life. and has pretax operating costs of $12,000 per year. The Techron II 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 23 percent and your discount rate is 13 percent, compute the EAC for both machines. (A negotlve answer should be Indlcated by a minus slgn. Do not round Intermedlate calculations and round your answers to 2 decimal places, e.9., 3216.) Which machine do you prefer? Techron 1 Techron

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