Benjamin is an engineer with the Lego Group in Bellund, Denmark, manufacturers of Lego toy construction blocks. He is responsible for the economic analysis of a new production method of special-purpose Lego parts. Method 1 will have an initial cost of $400,000, an annual operating cost of $140,000, and a life of three years. Method 2 will have an initial cost of $600,000, an operating cost of $100,000 per year, and a six-year life. Assume 10% salvage values for both methods. If Lego Industries uses a MARR of 15% per year, which method should it select on the basis of a present worth analysis?
solution
Solution:
15% off for this assignment.
Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!
Why US?
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Money Back
If you are convinced that our writer has not followed your requirements, feel free to ask for a refund.