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ou are evaluating two different silicon wafer milling machines.The Techron I costs $276,000, has a three-year life, and has pretaxoperating costs of $75,000 per year. The Techron II costs $480,000,has a five-year life, and has pretax operating costs of $48,000 peryear. For both milling machines, use straight-line depreciation tozero over the project’s life and assume a salvage value of $52,000.If your tax rate is 21 percent and your discount rate is 12percent, compute the EAC for both machines.A) Techron I? Techron II?B) Which machine do you prefer? Techron I or Techron II
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