You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has
a three-year life, and has pretax operating costs of $66,000 per year. The Techron II costs $435,
000, has a five-year life, and has pretax operating costs of $39,000 per year. For both milling
machines, use straight-line depreciation to zero over the project's life and assume a salvage value
of $43,000. If your tax rate is 22 percent and your discount rate is 11 percent, compute the EAC
for both machines. (A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Which
machine do you prefer? Techron II Techron I.
You are evaluating two different silicon wafer milling machi.pdf
1. You are evaluating two different silicon wafer milling machines. The Techron I costs $249,000, has
a three-year life, and has pretax operating costs of $66,000 per year. The Techron II costs $435,
000, has a five-year life, and has pretax operating costs of $39,000 per year. For both milling
machines, use straight-line depreciation to zero over the project's life and assume a salvage value
of $43,000. If your tax rate is 22 percent and your discount rate is 11 percent, compute the EAC
for both machines. (A negative answer should be indicated by a minus sign. Do not round
intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Which
machine do you prefer? Techron II Techron I
