A 50-mgpd (million gallons per day) water treatment plant is proposed for 2024 in Ureka. A 60-mgpd plant using the same treatment process was built in 2018 in Vancouver for $50,000,000. Given the following additional information and assumptions: • Poor site condition in Vancouver required an additional $3,000,000 for foundations, which is not anticipated for Ureka. • Assume inflation will persist at an average 4% per annum. • Assume the location index for Vancouver is 1.17 and 1.24 for Ureka. • A new high-pressure filter process will be added at Ureka at an additional cost of $4,000,000. • The construction period for the new plant will include winter construction. The Vancouver plant was not constructed through a winter season. Assume an increase in construction costs for Ureka of 12%. In order to make an order of magnitude estimate of the water treatment plant in Ureka, various multiplication factors need to be calculated. The multiplication factor based on the effect of inflation is Select one: O 1.04 O 1.22 O 1.27 O 124

A 50-mgpd (million gallons per day) water treatment plant is proposed for 2024 in Ureka. A 60-mgpd plant using the same treatment process was built in 2018 in Vancouver for $50,000,000. Given the following additional information and assumptions: • Poor site condition in Vancouver required an additional $3,000,000 for foundations, which is not anticipated for Ureka. • Assume inflation will persist at an average 4% per annum. • Assume the location index for Vancouver is 1.17 and 1.24 for Ureka. • A new high-pressure filter process will be added at Ureka at an additional cost of $4,000,000. • The construction period for the new plant will include winter construction. The Vancouver plant was not constructed through a winter season. Assume an increase in construction costs for Ureka of 12%. In order to make an order of magnitude estimate of the water treatment plant in Ureka, various multiplication factors need to be calculated. The multiplication factor based on the effect of inflation is Select one: O 1.04 O 1.22 O 1.27 O 124

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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