Question

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 19% per year, which alternative has the lower present worth?

Method	ddm	ls
first cost	$-200,000	$-380,000
M&O, per year	$-30,000	$-20,000
salvage value	$10,000	$35,000
life	2 years	4 years

The present worth for the DDM method is $_______ . The present worth for the LS method is $______ . The method is LS or DDM selected.

Answer 1