Compute the eac for both machines

Assignment Help Financial Management

Reference no: EM131813389

You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three-year life, and has pretax operating costs of $54,000 per year. The Techron II costs $375,000, has a five-year life, and has pretax operating costs of $27,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $31,000. If your tax rate is 30 percent and your discount rate is 9 percent, compute the EAC for both machines.

Reference no: EM131813389

Questions Cloud

What is the annual-per capita revenue diversion residents : What is the annual, per capita revenue diversion the residents would have to absorb to finance the loan’s repayment?

What clinical and financial data could be used : Write a 2-3 page paper in APA format, explaining what clinical and financial data could be used to demonstrate the effectiveness of the program.

Customers rave about the food at mike steak house : Customers rave about the food at Mike’s Steak House, but he knows that to many customers it is service that really makes the difference.

Categorize the development phase : Categorize the development phases that exist within the system engineering and software development disciplines of the development process framework.

Compute the eac for both machines : If your tax rate is 30 percent and your discount rate is 9 percent, compute the EAC for both machines.

What is your company largest current asset : What is your company's largest current asset? What is your company's largest fixed asset? Identify two notes that help explain some of your asset accounts

Compare the planning and control mechanisms : Compare and contrast the planning and control mechanisms required by one traditional software development process model

Research a system administration task : Your company is currently planning to automate many different system administration tasks. Your manager has asked you to research a system.

Describe how you would prepare for transport of the material : Describe how you would prepare for transport of these materials and ensure proper shipping documentation based on DOT regulations.

User Account

All Pages