Question

In: Finance

You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a...

You are evaluating two different silicon wafer milling machines. The Techron I costs $300,000, has a 3-year life, and has pretax operating costs of $83,000 per year. The Techron II costs $520,000, has a 5-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 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.)

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related 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 $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...
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...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT