Question: 7 12.50 points Problem 6-10 Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three- year

7 12.50 points Problem 6-10 Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a three- year life, and has pretax operating costs of $69,000 per year. The Techron Il costs $450,000, has a five- year life, and has pretax operating costs of $42.000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $46,000. 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) Techron I Techron Il EAC $ 34905.44 $6059.06 Which do you prefer? D Techron I . Techron II References

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