Question
In: Finance
You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a...
| You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three-year life, and has pretax operating costs of $54,000 per year. The Techron II costs $375,000, has a five-year life, and has pretax operating costs of $27,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $31,000. If your tax rate is 24 percent and your discount rate is 9 percent, compute the EAC for both machines. (Your answer 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.) |
| Which machine should you choose? |
-
Techron I
-
Techron II
Solutions
jeff jeffy answered 2 years agoRelated Solutions
You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $267,000, has a three-year life, and has pretax
operating costs of $72,000 per year. The Techron II costs $465,000,
has a five-year life, and has pretax operating costs of $45,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $49,000.
If your tax rate is 23 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $273,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $273,000, has a 3-year life, and has pretax
operating costs of $74,000 per year. The Techron II costs $475,000,
has a 5-year life, and has pretax operating costs of $47,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $51,000.
If your tax rate is 25 percent and your discount rate is 11
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $255,000, has a...
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 24 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $231,000, has a...
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 23 percent
and your discount rate is 9 percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $276,000, has a 3-year life, and has pretax
operating costs of $75,000 per year. The Techron II costs $480,000,
has a 5-year life, and has pretax operating costs of $48,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $52,000.
If your tax rate is 21 percent and your discount rate is 12
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $267,000, has a three-year life, and has pretax
operating costs of $72,000 per year. The Techron II costs $465,000,
has a five-year life, and has pretax operating costs of $45,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $49,000.
If your tax rate is 23 percent and your discount rate is 13
percent, compute...
You are evaluating two different silicon wafer milling machines. The Techron I costs $258,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $258,000, has a three-year life, and has pretax
operating costs of $69,000 per year. The Techron II costs $450,000,
has a five-year life, and has pretax operating costs of $42,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $46,000.
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 $261,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $261,000, has a three-year life, and has pretax
operating costs of $70,000 per year. The Techron II costs $455,000,
has a five-year life, and has pretax operating costs of $43,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $47,000.
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 $285,000, has a...
You are evaluating two different silicon wafer milling machines.
The Techron I costs $285,000, has a 3-year life, and has pretax
operating costs of $78,000 per year. The Techron II costs $495,000,
has a 5-year life, and has pretax operating costs of $45,000 per
year. For both milling machines, use straight-line depreciation to
zero over the project’s life and assume a salvage value of $55,000.
If your tax rate is 24 percent and your discount rate is 11
percent, compute...
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 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...
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