Question: You are evaluating two different milling machines to replace your current aging machine. Machine A costs $264057, has a three-year life, and has pretax operating
You are evaluating two different milling machines to replace your current aging machine. Machine A costs $264057, has a three-year life, and has pretax operating costs of $62835 per year Machine B costs $403055, has a five-year life, and has pretax operating costs of $31873 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $35644. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations) Topic: Capital Budgeting
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