ABC Technologies,Inc is evaluating two alternatives to produce its new plastic filament with tribological(low friction) properties for creating custom bearing for 3-D printers, The estimates associated with its alternatives are shown below. Using a MARR of 20% per year, whic alternative has the lower present worth?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Economic Study Methods

ABC Technologies,Inc is evaluating two alternatives to
produce its new plastic filament with tribological(low
friction) properties for creating custom bearing for 3-D
printers, The estimates associated with its alternatives
are shown below. Using a MARR of 20% per year, which
alternative has the lower present worth?
Method
DDM
LS
First Cost $
-164,000
-370,000
M&O cost, $/year
-55,000
-21,000
Salvage value $
30,000
Life, years
2
4
Transcribed Image Text:ABC Technologies,Inc is evaluating two alternatives to produce its new plastic filament with tribological(low friction) properties for creating custom bearing for 3-D printers, The estimates associated with its alternatives are shown below. Using a MARR of 20% per year, which alternative has the lower present worth? Method DDM LS First Cost $ -164,000 -370,000 M&O cost, $/year -55,000 -21,000 Salvage value $ 30,000 Life, years 2 4
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