Virgin Galactic is considering two materials for certain parts in a re-useable space vehicle: carbon fiber reinforced plastic (CFRP) and fiber reinforced ceramic (FRC). The costs are shown below.

Which should be selected on the basis of a present worth comparison at an interest rate of 10% per year? Solve using

(a) tabulated factors, and (b)

single-cell spreadsheet functions.

CFRP FRC First cost, $ 205,000 235,000 Maintenance cost, $/year 29,000 27,000 Salvage value, $ 2,000 20,000 Life, years 2 4