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...