Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (Le. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 8% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM S-220,000 $-40,000 $2.000 2 years LS $-400,000 S-30,000 $39,000 4 years The present worth for the DDM method is S The present vorth for the LS method is $ The (Cick to select) V method is selected.
Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (Le. low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 8% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM S-220,000 $-40,000 $2.000 2 years LS $-400,000 S-30,000 $39,000 4 years The present worth for the DDM method is S The present vorth for the LS method is $ The (Cick to select) 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
Problem 1PS
Related questions
Question
3
Transcribed Image Text:Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (Le low friction)
properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a
MARR of 8% per year, which alternative has the lower present worth?
Method
First Cost
M&O Cost, per Year
Salvage Value
Life
DDM
S-220000
S-40,000
$2.000
2 years
LS
$-400,000
S-30,000
$39,000
4 years
The present worth for the DDM method is S
The present worth for the LS method is $
The (Cick to select)
method is selected.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education