Dexcon Technologies, Ic., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 20% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM LS $-210,000 $-35,000 $0 $-390,000 $-25,000 $37,000 4 years 2 years The present worth for the DDM method is $ The present worth for the LS method is $| The LS v method is selected.
Dexcon Technologies, Ic., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 20% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM LS $-210,000 $-35,000 $0 $-390,000 $-25,000 $37,000 4 years 2 years The present worth for the DDM method is $ The present worth for the LS method is $| The LS v method is selected.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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