Homework Help is Here – Start Your Trial Now!
Business
Finance
44. If an ammonia plant that produces 250 tons per year cost P120 million to construct 8 years ago, what should an 800 ton per year plant cost now? Suppose that the construction cost index has increased an average rate of 10% per year for the past eight years and that the cost capacity factor to reflect economy of scale is 0.75. O P670.70 million O P580.67 million O P710.87 million O P615.44 million

44. If an ammonia plant that produces 250 tons per year cost P120 million to construct 8 years ago, what should an 800 ton per year plant cost now? Suppose that the construction cost index has increased an average rate of 10% per year for the past eight years and that the cost capacity factor to reflect economy of scale is 0.75. O P670.70 million O P580.67 million O P710.87 million O P615.44 million

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question
100%

RUSH! WILL UPVOTE! 

44. If an ammonia plant that produces 250 tons per year cost P120 million to construct 8 years ago, what should an 800 ton per year plant cost now? Suppose that the construction cost index has increased an average rate of 10% per year for the past eight years and that the cost capacity factor to reflect economy of scale is 0.75. O P670.70 million OP580.67 million O P710.87 million O P615.44 million
Transcribed Image Text:44. If an ammonia plant that produces 250 tons per year cost P120 million to construct 8 years ago, what should an 800 ton per year plant cost now? Suppose that the construction cost index has increased an average rate of 10% per year for the past eight years and that the cost capacity factor to reflect economy of scale is 0.75. O P670.70 million OP580.67 million O P710.87 million O P615.44 million
Expert Solution
steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Break-even Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS