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 aMARR of 17.00% per year, which alternative has the lower present worth? (Include a minus sign if necessary.)MethodFirst CostDDM$-220000LS$-420000M&O Cost, per YearSalvage Value$-50000$6000Life2 yearsThe present worth for the DDM method is $The present worth for the LS method is $The (Click to select) method is selected.(Click to select)DDMLS$-15000$250004 years

Answered: Dexcon Technologies, Inc., is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A large textile company is trying to decide among three alternatives of sludge dewatering processes. The costs associated with these alternatives are shown below. Alternative Y will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z would be replaced with another alternative Z having the same installed and operating costs. If the MARR is 12% per year, which alternative should be chosen? Alternative Y Installed costs S68500 S48500 $33500 Annual operating costs S6000 S4000 S5000 Overhaul cost in year 2 $9700 Salvage value (S) [your student ID/10) ID +10 ID- 10 ID- 10 Useful life, years 2.
An environmental engineer is considering three methods for disposing of a non-hazardous chemical sludge: land application, fluidized-bed incineration, and private disposal contract. The estimates for each method are below. Determine the equivalent present worth value of the LAND APPLICATION using its AW value based on 10% per year. Refer to table 2 for additional information. Table 2 Land Application Inciner- ation Contract Firg cost, S -150.000 -a00 000 Annual cost, Syear -95.000 -60,000 -170,000 Salvage value, S Life, years 25.000 300,000 4. 6. O $1,158,329 O $-1,158,329 O $933,027 O $-933,027 O No correct answer
Step by step solution for this question
Street lighting fixtures and their sodium vapor bulbs for a two-block area of a large city need to be installed at a first cost (investment cost) of $120,000. Annual maintenance expenses are expected to be $6,650 for the first 10 years and $10,000 each year thereafter upto 25 years. With an interest rate of 10% per year, what is the present worth cost of this project? Choose the closest answer below. OA. The present worth cost of the project is $251,632. OB. The present worth cost of the project is $271,133. OC. The present worth cost of the project is $236,922. OD. The present worth cost of the project is $190,186.
Army Research Laboratory scientists developed a diffusion-enhanced adhesion process which is expected to significantly improve the performance of multifunction hybrid composites. NASA engineers estimate that composites made using the new process will result in savings in space exploration projects. The cash flows for one project are estimated. Determine the rate of return per year. Year, t Cost ($1000) Savings ($1000) 0 −210 — 1 −150 — 2–5 — 100 + 60(t − 2)
A 50m2 apartment is for sale for $50,000 down payment plus $100,000 at the end of 1 year. The seller even offers the cash payment opportunity for which he asks for $124,000. If the market interest rate is 2.5% per month, what is the best alternative?
Machine D E First cost, $ −62,000 −77,000 AOC, $ per year −15,000 −21,000 Salvage value, $ 8,000 10,000 Life, years 4 6 NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Select between two metal-constricting machines. Use the corporate MARR of 15% per year with future worth analysis using tabulated factors.
A large textile company is trying to decide among three alternatives of sludge dewatering g, processes. The costs associated with these alternatives are shown below. Alternative Y will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z would be replaced with another alternative Z having the same installed and operating costs. If the MARR is 14% per year, which alternative should be chosen? \table[[Alternative,x,Y,Z 6) A large textile company is trying to decide among three alternatives of sludge dewatering processes. The costs associated with these alternatives are shown below. Alternative Y will need an upgrade of $9700 at the end of year 2. At the end of year 2, alternative Z would be replaced with another alternative Z having the same installed and operating costs. If the MARR is 14% per year, which alternative should be chosen? Alternative X Y Z Installed costs $68,500 $48,500 $33,500 Annual operating costs. $6000 $4000 $5000 Overhaul cost in year 2…
A building cost P8.5 million and the salvage value is P50,000 after 23 years. The annual maintenance cost is P85,000, costs of repair is P350,000 every 3 years. Find the capitalized cost if money worth 14% per annum. What is the renewal cost? What is the capitalized cost? (2 decimal places, rounded off), if whole number no need to add .00
please provide correct answer it would great help
An aerospace industry decides to purchase a new advanced machine.the cost of the machine are estimated to have a 4year useful life .if the MAAR Is 2096 per year . Determine which machine should be purchased on the basis of a role of return analysis. $annual operation cost 16,000,19,000 $first cost machine 31,000, 29,000
Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. \table[[\table[[Insulation], [ Thickness]], Installed Cost, \table[[Annual Savings in], [ Heat Loss]], Life of Insulation], [2cm, $20,000, $6,900 per year,4 years], [3cm, $35,000, $9,000 per year, 6 years]] The MARR = 10% per year. The study period is 12 years. Draw the cash flow diagram for each alternative over the entire study period. Two insulation thickness alternatives have been proposed for a process steam line subject to severe weather conditions. One alternative must be selected. Estimated installation cost and annual savings in heat loss are given below. Insulation Thickness 2cm Installed Cost $20,000 $35,000 Annual Savings in Heat Loss $6,900 per year $9,000 per year Life of Insulation 4 years 6 years 3cm = The MARR 10% per year. The study period…

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS