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you are evaluating two different silicon wafer millingmachines. The Techron I costs $245,000, has a three- year life anda pretax operating costs of $63,000 per year. The Techron II cosr$420,000, has a five year life, and has pretax operating costs of$35,000 per year. For both milling machines, use straight linedepreciation to zero over the project's life and assume a salvagevalue of $40,000. If your tax rate is 22 percent and your discountrate is 10 percent, compute the EAC for both machines.
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