Advanced Technologies, Inc. is evaluating two alternatives to produce its new plasticfilament with tribological (low friction) properties for creating custom bearing for 3-Dprinters. The estimates associated with its alternatives are shown below. Use LCMway and a MARR of 20% per year.MethodDDMLSFirst Cost $-165,000-375,000M&O cost, $/year-50,000-25,000Salvage value $30,000Life, years24Which Method should be selected?O a. Select Method DDM since it generates higher revenue.b. Select Method LS since it generates higher revenue.c. Select Method DDM since it is less costly.O d. Select Method LS since it is less costly.

Given both alternatives have negative or outflow of cashflow, we will compare both alternatives…

Advanced 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. Use LCM way and a MARR of 20% per year.

Advanced 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. Use LCM way and a MARR of 20% per year.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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