ou are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a...

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ou are evaluating two different silicon wafer milling machines.The Techron I costs $219,000, has a three-year life, and has pretaxoperating costs of $56,000 per year. The Techron II costs $385,000,has a five-year life, and has pretax operating costs of $29,000 peryear. For both milling machines, use straight-line depreciation tozero over the project’s life and assume a salvage value of $33,000.If your tax rate is 34 percent and your discount rate is 8 percent,compute the EAC for both machines. (Negative amounts should beindicated by a minus sign. Do not round intermediate calculationsand round your final answers to 2 decimal places. (e.g.,32.16))
EAC Techron I $ ??
EAC Techron II ??

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The Aftertax salvage Value Aftertax salvage value Salvage Value x 1 Tax Rate 33000 x 1 034 21780 Equivalent Annual Cost EAC for Techron I Operating Cash Flow OCF Operating Cash Flow OCF Pretax Cost Savings1 Tax Rate Depreciation x Tax Rate 560001 034 219000 3 Years x 034 36960 24820 12140 Net Present Value Period Annual Cash Flow Present Value factor at See Answer

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ou are evaluating two different silicon wafer milling machines.The Techron I costs $219,000, has a three-year life, and has pretaxoperating costs of $56,000 per year. The Techron II costs $385,000,has a five-year life, and has pretax operating costs of $29,000 peryear. For both milling machines, use straight-line depreciation tozero over the project’s life and assume a salvage value of $33,000.If your tax rate is 34 percent and your discount rate is 8 percent,compute the EAC for both machines. (Negative amounts should beindicated by a minus sign. Do not round intermediate calculationsand round your final answers to 2 decimal places. (e.g.,32.16))EAC Techron I $ ??EAC Techron II ??