You are evaluating two different silicon wafer milling machines. The Techron I c

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You are evaluating two different silicon wafer milling machines. The Techron I costs $182,000, has a 3-year life, and has pretax operating costs of $33,000 per year. The Techron II costs $301,000, has a 5-year life, and has pretax operating costs of $16,000 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 32 percent and your discount rate is 8 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))

     rev: 03_21_2013_QC_28244

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