Transcribed Image Text
You are evaluating two different silicon wafer milling machines.The Techron I costs $270,000, has a 3-year life, and has pretaxoperating costs of $73,000 per year. The Techron II costs $470,000,has a 5-year life, and has pretax operating costs of $46,000 peryear. For both milling machines, use straight-line depreciation tozero over the project’s life and assume a salvage value of $50,000.If your tax rate is 24 percent and your discount rate is 10percent, compute the EAC for both machines. (A negative answershould be indicated by a minus sign. Do not round intermediatecalculations and round your answers to 2 decimal places, e.g.,32.16.)
Other questions asked by students
Basic Math
Basic Math
Statistics
Accounting
Accounting