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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

please help

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
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

Blurred answer
Knowledge Booster
Market Demand
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education