Fred, the owner of Blue Blooms, was interested in the poinsettia tree racks manufactured by Creative Furniture Company. In a negotiation session, he said, "I would love to buy three of the poinsettia tree racks manufactured by your company. It would provide me with much more space to display my plants. But my budget allows only $900 total, including all delivery costs. You have to reduce the price from $1200 to $900, or else I cannot afford it." Identify the win-lose strategy used by Fred.

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.