Question: Calculating EAC you are evaluating two different silicon wafer milling machines. The Techron I costs $330,000, has a three-year life, and has pretax operating costs

Calculating EAC you are evaluating two different silicon wafer milling machines. The Techron I costs $330,000, has a three-year life, and has pretax operating costs of $41,000 per year. The Techron II costs $480,000, has a five-year life, and has pretax operating costs of $33,000 per year for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of S20.000. If your tax Tate S 35 percent and your discount rate is 14 percent, compute the EAC for both machines. Which do you prefer? Why?

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