A water filtration system in an industrial process was purchased in 2002 at a total cost of $250.000. It is planning to replace after ten years. The cost elements and their corresponding weights are given below. Additional information is given in the accompanying table Average Cost Element Percentage of Total Labor Assembly Equipment Cost 25 35 40 Index (1992) 180 115 135 Index (2002) 220 155 162 Index (2012) 250 175 206 a) Calculate a weighted index for water filtration system in 2002. b) Prepare a budget estimate for a water filtration system in 2012. c) What was the price of the water filtration system when it was first bought at 1992?
A water filtration system in an industrial process was purchased in 2002 at a total cost of $250.000. It is planning to replace after ten years. The cost elements and their corresponding weights are given below. Additional information is given in the accompanying table Average Cost Element Percentage of Total Labor Assembly Equipment Cost 25 35 40 Index (1992) 180 115 135 Index (2002) 220 155 162 Index (2012) 250 175 206 a) Calculate a weighted index for water filtration system in 2002. b) Prepare a budget estimate for a water filtration system in 2012. c) What was the price of the water filtration system when it was first bought at 1992?
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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