Your work must be prepared in an excel format. Use sales = 0 in the operating cash flow formula OCF = (sales - costs - depreciation) x ( 1- tax rate) + Depreciation. Find the free cash flows (negative in this case). Compute the net present values and apply the equivalent annual annuity costs (EAC) method because the machines have unequal lives. Then choose the machine that has lower absolute payments (costs here). You are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a 3-year life, and has pretax operating costs of $41,000 per year. The Techron II costs $330,000, has a 5-year life, and has pretax operating costs of $52,000 per year. For both milling machines, we use straight line depreciation to zero over the project's life and assume a salvage value of $25,000. If your tax rate is 21 percent and your discount rate is 9 percent, compute the EAC for both machines. Which machine do you prefer? Why