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 19% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-160,000 $-40,000 $10,000 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 $-500,000 $-10,000 $33,000 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 19% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-160,000 $-40,000 $10,000 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 $-500,000 $-10,000 $33,000 4 years
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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