Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 12% per year, which alternative has the lower present worth? The present worth for the DDM method is $ The present worth for the LS method is $

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.1MBA
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Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filament with tribological (i.e., low friction) properties for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 12% per year, which alternative has the lower present worth?

The present worth for the DDM method is $

The present worth for the LS method is $

 

 

 

DDM
Method
First Cost
M&O Cost, per Year
Salvage Value
Life
$-170,000
$-75,000
$8,000
2 years
LS
$-470,000
$-25,000
$15,000
4 years
Transcribed Image Text:DDM Method First Cost M&O Cost, per Year Salvage Value Life $-170,000 $-75,000 $8,000 2 years LS $-470,000 $-25,000 $15,000 4 years
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