Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low
Fantastic news! We've Found the answer you've been seeking!
Question:
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 16% per year, which alternative has the lower present worth?
| Method | DDM | LS |
| First Cost | $-170,000 | $-350,000 |
| M&O Cost, per Year | $-65,000 | $-40,000 |
| Salvage Value | $4,000 | $29,000 |
| Life | 2 years | 4 years |
The present worth for the DDM method is $ .
The present worth for the LS method is $ .
Expert Answer:
The life of DDM method is 2 years The life of LS option is 4 years Since the ... View the full answer
Related Book For 
Posted Date:
