On July 1, Shady Creek Resort borrowed $370,000 cash by signing a 10-year, 9.5% installment note requiring equal payments each June 30 of $58,928. What amount of interest expense will be included in the first annual payment?

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, 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 $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.