(Solution) - You are evaluating two different silicon wafer milling machines The -(2025 Original AI-Free Solution)

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You are evaluating two different silicon wafer milling machines. The Techron I costs $290,000, has a three-year life, and has pretax operating costs of $67,000 per year. The Techron II costs $510,000, 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 35 percent and your discount rate is 10 percent, compute the EAC for both machines. Which do you prefer? Why?