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 17% per year, which alternative has the lower present worth? Method DDM LS First Cost M&O Cost, per Year Salvage Value Life $-100,000 $-500,000 $-25,000 $27,000 $-40,000 $6,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The DDM v method is selected.

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 17% per year, which alternative has the lower present worth? Method DDM LS First Cost M&O Cost, per Year Salvage Value Life $-100,000 $-500,000 $-25,000 $27,000 $-40,000 $6,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The DDM v method is selected.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 10P

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