Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with low friction properties for creating custom bearings for 3-D printers The estimates associated with each alternative are shown below. Using a MARR of 16% per year, which alternative has the better present worth and what is that value (select the closest value)? Method First Cost AOC, per Year Salvage Value Life DDM $170,000 $65,000 $4,000 2 years LS $350,000 $40,000 $29,000 4 years DDM with a PW--$473,000 LS with a PW --$445,900 LS with a PW-$222,055 DDM with a PW-$109,300

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with low friction properties for creating custom bearings for 3-D printers.
The estimates associated with each alternative are shown below. Using a MARR of 16% per year, which alternative has the better present worth and what is that
value (select the closest value)?
Method
First Cost
AOC, per Year
Salvage Value
Life
DDM
$170,000
$65,000
$4,000
2 years
LS
$350,000
$40,000
$29,000
4 years
DDM with a PW--$473,000
LS with a PW --$445,900
LS with a PW --$222,055
DDM with a PW--$109,300
Transcribed Image Text:Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with low friction properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 16% per year, which alternative has the better present worth and what is that value (select the closest value)? Method First Cost AOC, per Year Salvage Value Life DDM $170,000 $65,000 $4,000 2 years LS $350,000 $40,000 $29,000 4 years DDM with a PW--$473,000 LS with a PW --$445,900 LS with a PW --$222,055 DDM with a PW--$109,300
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