### Evaluating two different silicon wafer milling machines

Assignment Help Financial Management
##### Reference no: EM132014688

You are evaluating two different silicon wafer milling machines. The Techron I costs \$270,000, has a three-year life, and has pretax operating costs of \$69,000 per year. The Techron II costs \$475,000, has a five-year life, and has pretax operating costs of \$36,000 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 the tax rate is 36% and your discount rate is 10%, What is the EAC for both machines, and which machine would be the better choice?

### Write a Review

#### What is financial break-even point for project

What is the financial break-even point for the project?

#### Expanding rapidly-currently needs to retain all of earnings

Microtech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

#### Explain how eurocurrency is created.

Explain how Eurocurrency is created.

#### Compute the realized rate of return for an investor

Compute the realized rate of return for an investor who purchased the bonds when they were issued and held them until they were called.

#### Share dividend-pay for the company stock today

Metroplex Corporation will pay a \$3.60 per share dividend next year. The company pledges to increase its dividend by 7.50 percent per year indefinitely. Required: If you require an 17.40 percent return on your investment, how much will you pay for th..

#### Preferred dividends-what is the annual dollar? dividend

What is the annual dollar? dividend? If it is paid? quarterly, how much will be paid each? quarter?

#### What is the after tax cost of debt for the company

If the market rate of 5% is appropriate for debt of this kind, what is the after tax cost of debt for the company?-

#### Annual return friendly earns on lending business

What is the effective annual return Friendly earns on this lending business.

#### Profit earnings per share and ratio

Kellogg recently earned of 2.52 profit earnings per share and has a P/E ratio 1.35. The dividend has been growing at 5 percent rate over the past few years if this rate continues, what would be the stock price in five years if the P//E ratio remained..

#### Shares of common stock outstanding

Dinklage Corp. has 5 million shares of common stock outstanding. The current share price is \$71, and the book value per share is \$6. The company also has two bond issues outstanding. The first bond issue has a face value of \$65 million, a coupon of 6..

#### Using the capital asset pricing model

Using the Capital Asset Pricing Model, how do we arrive at a beta? Does the beta of a stock every change? Under what circumstances?

#### What is the annual operating cash flow

A 12-year project is expected to generate annual sales of \$254,432, variable costs of \$32,782, and fixed costs of \$54,276. The annual depreciation is \$18,674 and the tax rate is 39 percent. What is the annual operating cash flow?