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problem: You are evaluating 2 different silicon wafer milling machines. The Techron 1st costs dollar 195,000, has a 3 year life, and has pretax operating costs of dollar 32,000 per year. The Techron 2nd costs dollar 295,000, has a 5 year life, & has pretax operating costs of dollar 19,000 per year. For both milling machines, use straight line depreciation to zero over the project’s life and suppose a salvage value of dollar 20,000. If your tax rate is 35% and your discount rate is 14%, find out the EAC for both machines. describe which machine do you prefer?

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