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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 15%
year, which alternative has the lower present worth?
per
Method
DDM
LS
First Cost
$-200,000
$-40,000
$-500,000
M&O Cost, per Year
$-40,000
Salvage Value
Life
$2,000
$21,000
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.
Transcribed Image Text: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 15% year, which alternative has the lower present worth? per Method DDM LS First Cost $-200,000 $-40,000 $-500,000 M&O Cost, per Year $-40,000 Salvage Value Life $2,000 $21,000 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.
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