3-41. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Select the closest answer. (3.4) (a) $4,618,000 (b) $10,623,000 (d) $14,891,000 (c) $14,342,000 Reference Size Reference Cost Cost-Capacity Factor Equipment New Design Size Finishing machine Jet dyer Steam dyer 150 yd/min 200 yd/min 100 yd/min $900,000 $1,125,000 $750,000 200 yd/min 450 yd/min 175 yd/min 0.92 0.87 0.79
3-41. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Select the closest answer. (3.4) (a) $4,618,000 (b) $10,623,000 (d) $14,891,000 (c) $14,342,000 Reference Size Reference Cost Cost-Capacity Factor Equipment New Design Size Finishing machine Jet dyer Steam dyer 150 yd/min 200 yd/min 100 yd/min $900,000 $1,125,000 $750,000 200 yd/min 450 yd/min 175 yd/min 0.92 0.87 0.79
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3-41. A small textile plant was constructed in 2004. The
major equipment, costs, and factors are shown below.
Estimate the cost to build a new plant in 2014 if the
index for this type of equipment has increased at an
average rate of 12% per year for the past 10 years. Select
the closest answer. (3.4)
(a) $4,618,000
(b) $10,623,000
(d) $14,891,000
(c) $14,342,000
Reference Size
Reference Cost
Cost-Capacity Factor
Equipment
New Design Size
Finishing machine
Jet dyer
Steam dyer
150 yd/min
200 yd/min
100 yd/min
$900,000
$1,125,000
$750,000
200 yd/min
450 yd/min
175 yd/min
0.92
0.87
0.79
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