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