Compute eac for both machines

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Reference no: EM132023700

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 project’s life and assume a salvage value of $45,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute the EAC for both machines.

EAC Techron I = ?

EAC Techron II = ?

Reference no: EM132023700

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