Dexcon Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low

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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 First cost, $ M&O cost, $/year Salvage value, $ Life, years LS DDM -164,000 -370,000 -55,000 -21,000 30,000 4

MARR
Minimum Acceptable Rate of Return (MARR), or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other...
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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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