Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filamentwith 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 15%year, which alternative has the lower present worth?perMethodDDMLSFirst Cost$-200,000$-40,000$-500,000M&O Cost, per Year$-40,000Salvage ValueLife$2,000$21,0002 years4 yearsThe present worth for the DDM method is $The present worth for the LS method is $The (Click to select) v method is selected.

Solution: - Calculation of present worth for DDM method as follows under: -

Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filamen 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 15% per year, which alternative has the lower present worth? Method DDM LS First Cost $-200,000 $-500,000 M&O Cost, per Year $-40,000 Salvage Value Life $-40,000 $21,000 $2,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The (Click to select) v method is selected.

Dexcon Technologies, Inc., is evaluating two alternatives to produce its new plastic filamen 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 15% per year, which alternative has the lower present worth? Method DDM LS First Cost $-200,000 $-500,000 M&O Cost, per Year $-40,000 Salvage Value Life $-40,000 $21,000 $2,000 2 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ The (Click to select) v method is selected.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 4P

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