Question: Problem 10-19 Calculating EAC (LO4] You are evaluating two different silicon wafer milling machines. The Techron | costs $255,000, has a three-year life, and has

Problem 10-19 Calculating EAC (LO4] You are evaluating two different silicon

Problem 10-19 Calculating EAC (LO4] You are evaluating two different silicon wafer milling machines. The Techron | costs $255,000, has a three-year life, and has pretax operating costs of $68,000 per year. The Techron Il costs $445,000, has a five-year life, and has pretax operating costs of $41,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $45,000. If your tax rate is 24 percent and your discount rate is 13 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Techron Techron II Which machine do you prefer? Techron 11 Techron

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