# Question: you are evaluating two different silicon wafer milling machines the...

###### Question details

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. **(****Your
answers should be a negative value and indicated by a minus
sign.** **Do not round intermediate calculations and
round your answers to 2 decimal places, e.g., 32.16.)**

EAC | |

Techron I | $ |

Techron II | $ |