You are evaluating two different milling machines to replace your current aging machine. Machine A costs $265,135, has a three-year life, and has pretax operating costs of $62,168 per year. Machine B costs $429,251, has a five-year life, and has pretax operating costs of $33,588 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $35,488. Your tax rate is 34 % and your discount rate is 10 %. What is the EAC for Machine A? (Round answer to 2 decimal places. Do not round intermediate calculations)
You are evaluating two different milling machines to replace your current aging machine. Machine A costs...
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...
You are evaluating two different silicon wafer milling machines. The Techron I costs $264,000, has a three-year life, and has pretax operating costs of $71,000 per year. The Techron II costs $460,000, has a five-year life, and has pretax operating costs of $44,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $48,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a three-year life, and has pretax operating costs of $83,000 per year. The Techron II costs $520,000, has a five-year life, and has pretax operating costs of $49,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $60,000. If your tax rate is 24 percent and your discount rate is 12 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $231,000, has a three-year life, and has pretax operating costs of $60,000 per year. The Techron II costs $405,000, has a five-year life, and has pretax operating costs of $33,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $37,000. If your tax rate is 35 percent and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $219,000, has a three-year life, and has pretax operating costs of $56,000 per year. The Techron Il costs $385,000, has a five-year life, and has pretax operating costs of $29,000 per year. For both milling machines, use straight-line depreciation to zero over the project's life and assume a salvage value of $33,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $237,000, has a three-year life, and has pretax operating costs of $62,000 per year. The Techron Il costs $415,000, 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 $39,000. If your tax rate is 34 percent and your discount rate is 8 percent, compute...
10. Calculating EAC You are evaluating two different silicon wafer milling machines. The Techron I costs $490,000, has a three-year life, and has pretax operating costs of $90,000 per year. The Techron II costs $620,000, has a five-year life, and has pretax operating costs of $97,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $76,000. If your tax rate is 35 percent and your discount rate is...
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 II 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...
You are evaluating two different silicon wafer milling machines. The Techron 1 costs $550,000, has a three-year life, and has pretax operating costs of $85,000 per year. The Techron II milling costs 650,000, has a five-year life, and has pretax operating costs of $97,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $75,000. If your tax rate is 30 percent and your discount rate is 15 percent,...