Solution-Compute the eac for both machines

Compute the eac for both machines

Assignment Help Corporate Finance

Reference no: EM13213897

You are evaluating two different silicon wafer milling machines. The Techron 1 costs $240,000, has a three-year life, and has pretax operating costs of $63,000 per year. The Techron II costs $420,000, has a five-year life, and has pretax operating costs of $36,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $40,000. If your tax rate is 35% and your discount rate is 10%, compute the EAC for both machines. Which do you prefer? Why?

Reference no: EM13213897

Questions Cloud

Determine what is the price that consumers will pay : Consider the market for ice cream as in the previous problem. This has a demand curve given by D(P)=100-P and a supply curve given by S(P)=1+98P. If the government implements a $9 tax, what is the price that consumers will pay

Calculate operating cash flow : Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case.

Explain fluoride is provided by hydrogen hexafluosilicate : How many grams of F- should be added to give 1.6 ppm? Fluoride is provided by hydrogen hexafluosilicate, H_2SiF_6. How many grams of H_2SiF_6 contain this much F-?

Determine the total number of holes dug : To dig a hole, it takes one person (P) and one shovel (S). The total number of holes dug is given by the production function h=f(P,S)=min(P,S). If you currently have 2 persons and 4 shovels, what is the marginal product of persons

Compute the eac for both machines : Dahlia enterprises needs someone to supply it with 120,000 cartons of machine screws per year to support its manufacturing needs over the next 5 years, and you've decided to bid on the contract.

Term medical error as descriptor of adverse medical outcomes : What do you think of the term “medical error” as a descriptor of adverse medical outcomes? After all, there are many medical procedures and treatments that are inherently risky and painful.

Define the concentration of the alkane : The concentration of the alkane C20H42 (FM 282.55) in a particular sample of rainwater is 0.2 ppb. Assume that the density of rainwater is close to 1.00 g/mL

What are the independent and dependent variables : A group of college students were given a short course in speed-reading. The instructor was curious if a monetary incentive would influence performance on a reading test taken at the end of the course. Half the students were offered $5 for obtainin..

Professional health care resources : professional health care resources, and three health care resources that can be utilized by both consumers and professionals.

User Account

All Pages

Compute the eac for both machines

Reference no: EM13213897

Reference no: EM13213897

Questions Cloud

Reviews

Write a Review

Corporate Finance Questions & Answers

Impact of the global economic crisis on business environment

Explain the short and the long-run effects on real output

Examine the requirements for measuring assets

Financial analysis report driven by rigorous ratio analysis

Calculate the value of the merged company

Stock market project

Write paper on financial analysis and business analysis

Intermediate finance

Average price-earnings ratio

Determine the financial consequences

Prepare a spread sheet model

Principles and tools for financial decision-making

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT