Dexcon Technologies, Ic., 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 a MARR of 20% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM LS $-210,000 $-35,000 $0 $-390,000 $-25,000 $37,000 4 years 2 years The present worth for the DDM method is $ The present worth for the LS method is $| The LS v method is selected.

Dexcon Technologies, Ic., 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 a MARR of 20% per year, which alternative has the lower present worth? Method First Cost M&O Cost, per Year Salvage Value Life DDM LS $-210,000 $-35,000 $0 $-390,000 $-25,000 $37,000 4 years 2 years The present worth for the DDM method is $ The present worth for the LS method is $| The LS v method is selected.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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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 a MARR of 20% per year, which alternative has the lower present worth? Method DDM LS First cost, $ −164,000 −370,000 M&O cost, $/year −55,000 −21,000 Salvage value, $ 0 30,000 Life, years 2 4
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