You are evaluating two different silicon wafer milling machines. The Techron I costs $209,000, has...
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You are evaluating two different silicon wafer milling machines. The Techron I costs $209,000, has a 2-year life, and has pretax operating costs of $35,000 per year. The Techron II costs $299,000, has a 4-year life, and has pretax operating costs of $22,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $20,000. If your tax rate is 34 percent and your discount rate is 13 percent. The Techron I has an EAC of $(. ? ) , while the Techron II has an EAC of $(. ? ) . You prefer Techron (Click to select I or II) .
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