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4 Required information Part 2 of 2 Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing
4 Required information Part 2 of 2 Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $320,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $620,000, an operating cost of $150,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 15% per year. 10 points eBook If the evaluation is incorrectly performed using the respective life estimates of 3 and economic decision? Explain your answer. years, will Lego make a correct or incorrect The present worth of method 1 is $ and that of method 2 is $ Hint Method (Click to select) is selected. Print References 4 Required information Part 2 of 2 Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $320,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $620,000, an operating cost of $150,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 15% per year. 10 points eBook If the evaluation is incorrectly performed using the respective life estimates of 3 and economic decision? Explain your answer. years, will Lego make a correct or incorrect The present worth of method 1 is $ and that of method 2 is $ Hint Method (Click to select) is selected. Print References
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