3. You are evaluating two different silicon wafer milling machines. The Techron I costs $245.000,...
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3. You are evaluating two different silicon wafer milling machines. The Techron I costs $245.000, has a 3-year life, and has pretax operating costs of $39,000 per year. The Techron II costs $315,000, has a 5-year life, and has pretax operating costs of $48,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $20,000. If your tax rate is 35% and your discount rate is 9%, compute the EAC for both machines. Which do you prefer? Why? (20 points)
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