Economic Study Method Advanced Technologies, Inc. is evaluating two alternatives to produceits new plastic filament with tribological (low friction) properties forcreating custom bearing for 3-D printers. The estimates associatedwith its alternatives are shown below. Use LCM way and a MARR of20% per year.MethodDDMLSFirst Cost $-165,000-375,000M&O cost, Slyear-50,000-25,000Salvage value $30,000Life, years4A) Using LCM, the future worth of DDM is $Include a negativesign if necessary. (1 point)ANSWER: $B) Using LCM, the future worth of LS is $_ Include a negative signif necessary. (1 point)ANSWER: $.C) Based on Future Worth analysis, which Method should beselected? (1 point)Select Method_ (DDM, LS) because it (is less costly, has higherrevenue)ANSWER:

When the lives of alternatives evaluated are not the same then we have to use either LCM of lives or…

Advanced Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (low friction) properties for creating custom bearing for 3-D printers. The estimates associated with its alternatives are shown below. Use LCM way and a MARR of 20% per year. Method DDM LS First Cost $ -165,000 -375,000 M&O cost, $/year -50,000 -25,000 Salvage value $ 30,000 Life, years 4 2.

Advanced Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (low friction) properties for creating custom bearing for 3-D printers. The estimates associated with its alternatives are shown below. Use LCM way and a MARR of 20% per year. Method DDM LS First Cost $ -165,000 -375,000 M&O cost, $/year -50,000 -25,000 Salvage value $ 30,000 Life, years 4 2.

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 10E

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