NASA is considering two materials for use in a space vehicle tracking station in Australia. The estimates are shown below. Which should be selected on an economic basis of present worth values at an interest rate of 10% per year?
 FIGURE 1.png)
PWM = -205,000 – 29,000(P/A,10%,4) – 203,000(P/F,10%,2)
+ 2000(P/F,10%,4)
= -205,000 – 29,000(3.1699) – 203,000(0.8264) + 2000(0.6830)
= $-463,320
PWFF = -235,000 – 27,000(P/A,10%,4) + 20,000(P/F,10%,4)
= -235,000 – 27,000(3.1699) + 20,000(0.6830)
= $-306,927
Select material FF
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