Determine the annual equivalent cost of operating

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Reference no: EM132016645

A car manufacturer is considering establishing a computer engineering center. The center will be equipped with 3 engineering stations. Each center will cost $ 25,000 and will give a service life of 5 years. The expected residual value is practically zero. The annual operation and maintenance costs for each work station are $ 15,000. If the MARR is 15%, determine the annual equivalent cost (AE) of operating the engineering center.

Draw a graph of the situation.

express the equations in a nomenclature table to determine AE

Replace the values and calculate the AE for the problem

Reference no: EM132016645

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