design your own clothes Chapter 5 Homework 6 3 Dexcon Technologies, Inc., is eva

Question

design your own clothes Chapter 5 Homework 6 3 Dexcon Technologies, Inc., is evaluating two alternatives for creating custom bearings for 3-D printers. The estimates associated with each alternative are shown below. Using a MARR of 17% per year, which alternative has the lower present worth? to produce its new plastic filament with tribological (i.e., low friction) properties 10 thod irst Cost LS $-420,000 M&O Cost, per Year 50 years 4 years The present worth for the DDM method is $ The present worth for the LS method is $ Print The Click to select) method is selected. References

Explanation / Answer

ANs 1)

PW for DCM=PW of Salvage Value-PW of M&O-First Cost

=6000/1.17^2-50000/1.17-50000/1.17^2-220000=-$294877.64

PW for LS=PW of Salvage Value-PW of M&O-First Cost

=25000/1.17^4-15000/1.17-15000/1.17^2-15000/1.17^3-15000/1.17^4-420000=-$447807.2

PW of DCM is higher than LS

Hence LS to be chosen

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