A new production facility for ACME, Inc., is being designed. You've been asked to estimate the costs for the new 100,000 ft² facility. A similar facility was constructed two years ago, with a size of 75,000 ft² and a cost of $8.3 million. Using a power- sizing exponent of 0.85, what would you estimate the cost to be for the new ACME production facility? Round to the nearest thousands of dollars.

A new production facility for ACME, Inc., is being designed. You've been asked to estimate the costs for the new 100,000 ft² facility. A similar facility was constructed two years ago, with a size of 75,000 ft² and a cost of $8.3 million. Using a power- sizing exponent of 0.85, what would you estimate the cost to be for the new ACME production facility? Round to the nearest thousands of dollars.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1E

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