Evaluating two different silicon wafer milling machines

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Reference no: EM131499144

You are evaluating two different silicon wafer milling machines. The Techron I costs $195,000, has a 4-year life, and has pretax operating costs of $36,000 per year. The Techron II costs $297,000, has a 7-year life, and has pretax operating costs of $18,000 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 16 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))

Reference no: EM131499144

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