Problem $6-12$ Calculating EAC

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

points

$$303,000,$ has a $3-$year life, and has pretax operating costs of $$84,000$ per year. The

Techron II costs $$525,000,$ has a $5-$year life, and has pretax operating costs of $$57,000$

per year. For both milling machines, use straight$-$IIne depreclation to zero over the

project's life and assume a salvage value of $$61,000.$ If your tax rate is $25$ percent and

your discount rate is $13$ percent, compute the EAC for both machines. $($A negatlve

answer should be Indicated by a minus sign. Do not round Intermedlate calculations

and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete but not entirely correct.

Which machine do you prefer?

Techron I

Techron II