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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 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.) Method First Cost DDM $-220000 LS $-420000 M&O Cost, per Year Salvage Value $-50000 $6000 Life 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. (Click to select) DDM LS $-15000 $25000 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 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.) Method First Cost DDM $-220000 LS $-420000 M&O Cost, per Year Salvage Value $-50000 $6000 Life 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. (Click to select) DDM LS $-15000 $25000 4 years

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 6E
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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 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.) Method First Cost DDM $-220000 LS $-420000 M&O Cost, per Year Salvage Value $-50000 $6000 Life 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. (Click to select) DDM LS $-15000 $25000 4 years
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 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.) Method First Cost DDM $-220000 LS $-420000 M&O Cost, per Year Salvage Value $-50000 $6000 Life 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. (Click to select) DDM LS $-15000 $25000 4 years
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