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 eachworkstation 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.Click the icon to view the interest factors for discrete compounding when MARR= 15% per year.CThe equivalent annual cost is $thousand. (Round to the nearest whole number.)More InfoWorthSingle PaymentCompound PresentAmountFactor(F/P, i, N)1.1500CompoundAmountFactor(F/A, i, N)Factor(P/F, i, N)0.88961.00001.32250.75612.15001.52090.65753.47250.57184.99341.74902.01140.49726.74240.43238.75370.375911.06882.31312.68003.05903.51790.326913.72680.284316.78584.04560.247220.3037SAWNIN23456789910Equal Payment SeriesSinking PresentFundWorthFactorFactor(A/F, i, N)(P/A, i, N)1.00000.88960.48511.62570.28802.28320.20032.85500.14833.35220.11423.78450.00044.16040.07294.48730.05964.77180.04935.0188CapitalRecoveryFactor(A/P, i, N)1.15000.61510.43800.35030.29830.28420.24040.22290.20960.1993X

Given annual operating and maintenance cost for each workstation is $25,000 MARR = 15% Service life…

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. Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The equivalent annual cost is thousand. (Round to the nearest whole number)

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. Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. The equivalent annual cost is thousand. (Round to the nearest whole number)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

100%

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.
Click the icon to view the interest factors for discrete compounding when MARR= 15% per year.
C
The equivalent annual cost is $thousand. (Round to the nearest whole number.)
More Info
Worth
Single Payment
Compound Present
Amount
Factor
(F/P, i, N)
1.1500
Compound
Amount
Factor
(F/A, i, N)
Factor
(P/F, i, N)
0.8896
1.0000
1.3225
0.7561
2.1500
1.5209
0.6575
3.4725
0.5718
4.9934
1.7490
2.0114
0.4972
6.7424
0.4323
8.7537
0.3759
11.0688
2.3131
2.6800
3.0590
3.5179
0.3269
13.7268
0.2843
16.7858
4.0456
0.2472
20.3037
SAWNIN
2
3
4
5
67899
10
Equal Payment Series
Sinking Present
Fund
Worth
Factor
Factor
(A/F, i, N)
(P/A, i, N)
1.0000
0.8896
0.4851
1.6257
0.2880
2.2832
0.2003
2.8550
0.1483
3.3522
0.1142
3.7845
0.0004
4.1604
0.0729
4.4873
0.0596
4.7718
0.0493
5.0188
Capital
Recovery
Factor
(A/P, i, N)
1.1500
0.6151
0.4380
0.3503
0.2983
0.2842
0.2404
0.2229
0.2096
0.1993
X

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