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###### You are evaluating two different silicon wafer milling machines. The Techron I costs $252,000, has a...

You are evaluating two different silicon wafer milling machines. The Techron I costs $252,000, has a 3-year life, and has pretax operating costs of $67,000 per year. The Techron Il costs $440,000, has a 5-year life, and has pretax operating costs of $40,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $44,000. If your tax rate is 23 percent and your discount rate is 12 percent, compute the EAC for both machines. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) $ Techron! Techron 11 - 127,149.64 -127,287.24 $ Which machine do you prefer? Techron 11 Techron!

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