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?
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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Economic Study Methods

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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