Problem $10-19$ Calculating EAC $[$LO$4]$

You are evaluating two different silicon wafer milling machines. The Techron I costs

$$285,000,$ has a three$-$year life, and has pretax operating costs of $$78,000$ per year. The

Techron II costs $$495,000,$ has a five$-$year life, and has pretax operating costs of

$$45,000$ per year. For both milling machines, use straight$-$line depreciation to zero over

the project's life and assume a salvage value of $$55,000.$ If your tax rate is $24$ percent

and your discount rate is $11$ percent, compute the EAC for both machines. $($A negative

answer should be indicated by a minus sign. Do not round intermediate calculations