You are evaluating two different silicon wafer milling machines. The Techron I costs $255,000, has...
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Accounting
You are evaluating two different silicon wafer milling machines. The Techron I costs $255,000, has a three-year life, and has pretax operating costs of $68,000 per year. The Techron II costs $445,000, has a five-year life, and has pretax operating costs of $41,000 per year. For both milling machines, use straight-line depreciation to zero over the projects life and assume a salvage value of $45,000. If your tax rate is 24 percent and your discount rate is 13 percent, compute the EAC for both machines.
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