4 Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (e, low friction).properties fo creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below Using aMARR of 16% per year, which alternative has the lower present worth?MethodFirst CostM&O Cost, per YearSalvage ValueLifeDDM$210.000$ 45.000$4,0002 yearsLS$ 410,000$-10,000$23,0004 yearsThe present worth for the DDM method is $The present worth for the LS method is $The (Click to select) v method is selected.

Present Worth: It represents the present value of the annual cash flow stream and is computed by…

Answered: The present worth for the DDM method is…

The present worth for the DDM method is $ The present worth for the LS method is $ Ehe (Click to select) 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

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (e, low friction).
properties fo creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below Using a
MARR of 16% per year, which alternative has the lower present worth?
Method
First Cost
M&O Cost, per Year
Salvage Value
Life
DDM
$210.000
$ 45.000
$4,000
2 years
LS
$ 410,000
$-10,000
$23,000
4 years
The present worth for the DDM method is $
The present worth for the LS method is $
The (Click to select) v method is selected.

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