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? Material M FF First cost, $ −205,000 −235,000 Maintenance cost, $/year −29,000 −27,000 Salvage value, $ 2,000 20,000 Life, years 2 4

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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?
Material M FF
First cost, $ −205,000 −235,000
Maintenance cost, $/year −29,000 −27,000
Salvage value, $ 2,000 20,000
Life, years 2 4

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