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PLEASE SHOW WORK!! You are evaluating two different silicon wafer milling machin

ID: 2661011 • Letter: P

Question

PLEASE SHOW WORK!!


You are evaluating two different silicon wafer milling machines. The Techron I costs $210,000, has a 5-year life, and has pretax operating costs of $38,000 per year. The Techron II costs $293,000, has a 7-year life, and has pretax operating costs of $20,000 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 31 percent and your discount rate is 15 percent. The Techron I has an EAC of $ , while the Techron II has an EAC of $ . You prefer Techron . (Do not include the dollar signs ($). Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

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