Question: POLIPE 19. Calculating EAC L04) You are evaluating two different silicon wan machines. The Techron I costs $245,000, has a three-year life, and has pretas

 POLIPE 19. Calculating EAC L04) You are evaluating two different silicon

POLIPE 19. Calculating EAC L04) You are evaluating two different silicon wan machines. The Techron I costs $245,000, has a three-year life, and has pretas . ating costs of $63,000 per year. The Techron Il costs $420,000, has a five-year lite, and has pretax operating costs of $35,000 per year. For both milling machines, straight-line depreciation to zero over the project's life and assume a salvage value of $40,000. If your tax rate is 22 percent and your discount rate is 10 percent, compute the EAC for both machines. Which do you prefer? Why

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