A construction firm is considering establishingan engineering computing center. The center will beequipped with three engineering workstations thatcost $45,000 each, and each has a service life of fiveyears. The expected salvage value of each workstation is $2,000. The annual operating and maintenancecost would be $25,000 for each workstation. At aMARR of 15%, determine the equivalent annual costfor operating the engineering center.
A construction firm is considering establishingan engineering computing center. The center will beequipped with three engineering workstations thatcost $45,000 each, and each has a service life of fiveyears. The expected salvage value of each workstation is $2,000. The annual operating and maintenancecost would be $25,000 for each workstation. At aMARR of 15%, determine the equivalent annual costfor operating the engineering center.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A construction firm is considering establishing
an engineering computing center. The center will be
equipped with three engineering workstations that
cost $45,000 each, and each has a service life of five
years. The expected salvage value of each workstation is $2,000. The annual operating and maintenance
cost would be $25,000 for each workstation. At a
MARR of 15%, determine the equivalent annual cost
for operating the engineering center.
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