Solve it by excel please !! Alternative Comparison-Different Lives Dexcon Techno

Question

Solve it by excel please !!

Alternative Comparison-Different Lives 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 20% per year which alternative has the lower present worth? Method First cost, $ M&O; cost, S/year Salvage value, S Life, years DDM -164,000 -55,000 LS -370,000 -21,000 30,000

Explanation / Answer

DDM has the lowest PW which needs to be selected.

Year Discount factor(1/(1+0.2)^n) DDM Discounted DDM LS Discounted LS 0 1.00 -164000 -164000 -370000 -370000 1 0.83 -55000 -45833.33 -21000 -17500 2 0.69 -55000 -38194.44 -21000 -14583.33 3 0.58 -21000 -12152.78 4 0.48 30000 14467.59 PW -248027.78 -399768.52

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