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 12% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-130,000 $-45,000 $8,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The (Click to select) method is selected. LS $-310,000 $-20,000 $21,000 4 years
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 12% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-130,000 $-45,000 $8,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The (Click to select) method is selected. LS $-310,000 $-20,000 $21,000 4 years
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![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 12% per year, which
alternative has the lower present worth?
Method
First Cost
M&O Cost, per Year
Salvage Value
Life
DDM
$-130,000
$-45,000
$8,000
2 years
The present worth for the DDM method is $
The present worth for the LS method is $
The (Click to select) method is selected.
LS
$-310,000
$-20,000
$21,000
4 years](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffa13b390-153c-4bb2-a340-233567c0b4cb%2F85629a3f-6047-435a-af14-96a8afaae7f0%2F3r866xf_processed.jpeg&w=3840&q=75)
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 12% per year, which
alternative has the lower present worth?
Method
First Cost
M&O Cost, per Year
Salvage Value
Life
DDM
$-130,000
$-45,000
$8,000
2 years
The present worth for the DDM method is $
The present worth for the LS method is $
The (Click to select) method is selected.
LS
$-310,000
$-20,000
$21,000
4 years
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