Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please do it throught Excel and the explanation. Thank you 5.17 Exercise 1 Problem 5.17 2 3 4 Dexcon Technologies, Inc. is evaluating
Can you please do it throught Excel and the explanation. Thank you
5.17 Exercise
1 Problem 5.17 2 3 4 Dexcon Technologies, Inc. is evaluating two alternatives to produce its new plastic filament with tribological (i.e., 5 low friction) properties for creating custom bearings for 3D printers. The estimates associated with each 6 alternative are shown below. Using a MARR of 20% per year, which alternative has the lower present worth? 7 8 Method DDM L5 9 First cost, 5 464,000 370,000 10 M&O cost, Slvear 55,000 21,000 11 Salvage value, 5 0 30,000 12 Life, years 2 4 13 14 (a) What is the present worth of DDM? 15 (b) What is the present worth of L5? 16 (c) Would you select DDM or LS? 17 | | I 18 ' 19 20 21 A B C D E F G H | J Problem 5.21 An engineer is trying to decide which process to use to reduce sludge volume prior to disposal. Belt filter presses (BFP) will cost $203,000 to buy and $85,000 per year to operate. Belts will be replaced one time per year at a cost of $5500. Centrifuges (Cent) will cost $396,000 to buy and $119,000 per year to operate, but because the centrifuge will produce a thicker \"cake", the sludge hauling cost to the monofill will be $37,000 per year less than for the belt presses. The useful lives are 5 and 10 years for alternatives BFP and Cent, respectively, and the salvage values are assumed to be 10% of the first cost of each process whenever they are closed down or replaced. Use PW evaluation to select the more economical process at an interest rate of 6% per year over (a) the LCM of lives, and (b) a study period of 8 years. Are the decisions the same? RDOONCDU'I-buuNiI l'l' l'O (a) For the Useful Lives provided above: Present Worth of BFP? Present Worth of Cent? BFP or Cent for the useful lives? l'l'l'l'l'H \\lChU'I-bWN (b) For a period of 8 years: Present Worth of BFP? Present Worth of Cent? BFP or Cent for a period of 8 years? |:l NNNNl'H le'OLDOOStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started