Question: Problem 8-10 Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has preta:x

Problem 8-10 Calculating EAC You are evaluating two different silicon wafer

Problem 8-10 Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $261,000, has a three-year life, and has preta:x operating costs of $70,000 per year. The Techron Il costs $455,000, has a five-year life, and has pretax operating costs of $43,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $47,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute the EAC for both machines. (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EAC $ 24,336.28 $-784.14 Techron Techron II Which machine should you choose? Techron I Techron

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