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Business, 19.03.2021 01:00 only1123

you are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a 3-year life and has pretax operating costs of $41,000 per year. The Techron II costs $330,000, has a 5-year life, and has pretax operating costs of $52,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $25,000. If your tax rate is 21% and your discount rate is 9%, compute the EAC for both machines. Which do you prefer? Why?

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you are evaluating two different silicon wafer milling machines. The Techron I costs $265,000, has a...
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