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Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plasticfilament with tribological (i.e., low friction) properties for creating custom bearings for 3-Dprinters. The
Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plasticfilament with tribological (i.e., low friction) properties for creating custom bearings for 3-Dprinters. The estimates associated with each alternative are shown below. Using a MARR of16% per year, which alternative has the lower present worth?
DDM LS
First Cost$-210,000 $ -410,000
M&O Cost, per Year $-45,000 $-10,000
Salvage Value$4,000 $23,000
Life 2 years 4 years
The present worth for theDDM method is $.
The present worth for theLS method is $.
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