You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has...
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Accounting
You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $72,000 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 projects life and assume a salvage value of $49,000. If your tax rate is 35 percent and your discount rate is 9 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))
EAC
Techron I
$
Techron II
$
Which do you prefer?
Techron I
Techron II
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