Question: You are evaluating two different vaccine manufacturing reactors. The Phize costs $303,000, has a three-year life, and has pretax operating costs of $84,000 per year.
You are evaluating two different vaccine manufacturing reactors. The Phize costs $303,000, has a three-year life, and has pretax operating costs of $84,000 per year. The ModeZen costs $525,000, has a five-year life, and has pretax operating costs of $57,000 per year. For both milling machines, use straight-line depreciation 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 negative answershould be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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