Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17EB: Caduceus Company is considering the purchase of a new piece of factory equipment that will cost...
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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6813d58-7b84-4057-b95a-7bc373972e1c%2F5f876a36-7976-40c9-a4f3-fff6eeb6ca1f%2Fw9a8cgc_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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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