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Business, 15.07.2020 19:01 123abc321cbaabc

You are evaluating two different silicon wafer milling machines. The Techron I costs $245,000, 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 $35,000 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 22% and your discount rate is 10%, compute the EAC for both machines. Which do you prefer?

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You are evaluating two different silicon wafer milling machines. The Techron I costs $245,000, has a...
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