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You are evaluating two different silicon wafer milling machines. the Techron I cost,$290,000, has three-year life, and has pre-tax operating cost of $67,000 per year. the,Techron II costs $510,000, has a five-year life, and has pre-tax 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?,

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