A small textile plant was constructed in 2000. The major equipment, costs, and factors are shown below. Estimate the cost to build a new planthe past 8 years.Next Questionfor this type of equipment has increased at an average rate of 14% per year forEquipmentReference SizeReference CostCost-Capacity FactorNew Design SizeFinishing machineJet dyerSteam dyer$825,000160 yd/min220 yd/min100 yd/min200 yd/min460 yd/min175 yd/min0.92$1,200,0000.85$750,0000.77Choose the correct answer below.O A Estimated cost for a new plant is $22,770,834.O B. Estimated cost for a new plant is $10,491,057.O C. Estimated cost for a new plant is $12,589,268.O D. Estimated cost for a new plant is $1,547,116.

Answer is: As the cost are given of 8 years old so, first we need to convert the cost into…

Answered: A small textile plant was constructed…

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

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