capital budgeting

| December 10, 2015
you are evaluating two different silicon wafer milling machines. The Techron I costs $214,000, has a 2-year life, and has pretax operating costs of $31,000 per year. The Techron II costs $308,000, has a 5-year life, and has pretax operating costs of $23,000 per year. For both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $20,000. If your tax rate is 32 percent and your discount rate is 12 percent. The Techron I has an EAC of $?, while the Techron II has an EAC of $?. You prefer Techron I or II? (Round your answer to 2 decimal places).

Comment

Get a 5 % discount on an order above $ 150
Use the following coupon code :
2018DISC
budgeting
leverage

Category: Finance

Our Services:
Order a customized paper today!