Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie.. low friction)properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using aMARR of 10% per year, which alternative has the lower present worth?MethodFirst CostM&O Cost, per YearSalvage ValueLifeDDM$-190,000$-55,000$4,0002 yearsThe present worth for the DDM method is $The present worth for the LS method is $The LSmethod is selected.LS$-430,000$-25,000$39,0004 years

The Present worth (PW), also called the discounted value, is a financial as well as economic concept…

Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie.. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using MARR of 10% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-190,000 $-55,000 $4,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The LS method is selected. LS $-430,000 $25,000 $39,000 4 years

Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (ie.. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using MARR of 10% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM $-190,000 $-55,000 $4,000 2 years The present worth for the DDM method is $ The present worth for the LS method is $ The LS method is selected. LS $-430,000 $25,000 $39,000 4 years

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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