Problem $6-12$ Calculating EAC

You are evaluating two different silicon wafer milling machines. The Techron I costs $$285,000,$ has a $3-$year life, and has pretax operating costs of $$78,000$ per year. The Techron II costs $$495,000,$ has a $5-$year life, and has pretax operating costs of $$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 and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$Techron I,$],[$Techron II$,]]$

Which machine do you prefer?

Techron II

Techron I