Question: Calculating EAC. You we evaluating two different silicon wafer milling machines. The Techron I costs $265,000, hus a three-year life, and has pre-tax operating costs

 Calculating EAC. You we evaluating two different silicon wafer milling machines.

Calculating EAC. You we evaluating two different silicon wafer milling machines. The Techron I costs $265,000, hus a three-year life, and has pre-tax operating costs of $74.000 per year. The Techon Il costs $445,000, has a five-year life, and has protax operating costs of $47.000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a Savage value of $40,000. If your tax rate is 22% and your discount rate is 10%, compute the EAC for both machines Which do you prefer? Ww

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