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
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![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3276014f-89d4-4667-b287-6c5cad0df8c2%2Fff752ee3-9bd7-4d1e-be84-2cdde3aeb753%2F9ehjqsn_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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?
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