Dexcon Technologies, Inc., 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 17% per year, which alternative has the lower present worth? Method DDM LS First Cost M&O Cost, per Year Salvage Value Life $-100,000 $-500,000 $-25,000 $27,000 $-40,000 $6,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The DDM v method is selected.
Dexcon Technologies, Inc., 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 17% per year, which alternative has the lower present worth? Method DDM LS First Cost M&O Cost, per Year Salvage Value Life $-100,000 $-500,000 $-25,000 $27,000 $-40,000 $6,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The DDM v method is selected.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Dexcon Technologies, Inc., 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 17% per year, which alternative has the lower present worth?
Method
DDM
LS
First Cost
M&O Cost, per Year
Salvage Value
Life
$-100,000
$-500,000
$-25,000
$27,000
$-40,000
$6,000
2 years
4 years
The present worth for the DDM method is $
The present worth for the LS method is $
The DDM
v method is selected.
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