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Old MathJax webview solve it by using tabulated factors on paper do not use excel please Benjamin is an engineer with the Lego Group in

Old MathJax webview

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solve it by using tabulated factors on paper do not use excel please

Benjamin is an engineer with the Lego Group in Bellund, Denmark, manufacturers of Lego toy construction blocks. He is responsible for the economic analysis of a new production method of special-purpose Lego parts. Method 1 will have an initial cost of $400,000, an annual operating cost of $140,000, and a life of three years. Method 2 will have an initial cost of $600,000, an operating cost of $100,000 per year, and a six-year life. Assume 10% salvage values for both methods. If Lego Industries uses a MARR of 15% per year, which method should it select on the basis of a present worth analysis

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