Required information Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $430000, an annual operating cost of $145000, and a life of 3 years. Method 2 will have an initial cost of $630000, an operating cost of $140000 per year, and a 6-year life. Assume 10.00% salvage values for both methods. Lego uses an MARR of 14.00% per year. Which method should it select on the basis of a present worth analysis? (Include a minus sign if necessary.) The present worth of method 1 is $[ Method (Click to select) is selected. (Click to select) 1 2 and that of method 2 is S

Required information Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $430000, an annual operating cost of $145000, and a life of 3 years. Method 2 will have an initial cost of $630000, an operating cost of $140000 per year, and a 6-year life. Assume 10.00% salvage values for both methods. Lego uses an MARR of 14.00% per year. Which method should it select on the basis of a present worth analysis? (Include a minus sign if necessary.) The present worth of method 1 is $[ Method (Click to select) is selected. (Click to select) 1 2 and that of method 2 is S

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I need help only with the second part of inputting this data into excel calculating the Annual Worth for both options. Then using Goal Seek to find out the new salvage value that will equal AW equations, thank you.
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Nikul
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