Question: Please help with details. You are evaluating two different silicon wafer milling machines. The Techron l costs $249,000, has a three- year life, and has
Please help with details.
You are evaluating two different silicon wafer milling machines. The Techron l costs $249,000, has a three- year life, and has pretax operating costs of $66,000 per year The Techron ll costs $435,000, has a five- year life, and has pretax operating costs of $39,000 per year. For both m ng 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 35 percent and your discount rate is 10 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).) EAC Techron I Techron ll Which machine should you choose? Techron ll Techron
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
