Question: Problem 05.017 Alternative Comparison - Different Lives Dexcon Technologies, Inc., Is evaluating two alternatives to produce its new plastic filament with tribological (e., low friction)
Problem 05.017 Alternative Comparison - Different Lives Dexcon Technologies, Inc., Is evaluating two alternatives to produce its new plastic filament with tribological (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 8% per year, which alternative has the lower present worth? Method DOM LS First Cost $-180,000 $-420,000 M&O Cost per Year $ 50,000 $ 20,000 Salvage Value $2,000 $37,000 Life 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The LS method is selected
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