Q11.5. The delivered-equipment cost for afully equipped CNC machining system is$4.6 million. The direct cost factor is 1.52and the indirect cost factor is 0.31.Estimate the total plant cost if the indirectcost factor applies to (a) the delivered-equipment cost only, and (b) the totaldirect cost.Show transcribed image text Q11.5. Thedelivered-equipment cost for a fullyequipped CNC machining system is $4.6million. The direct cost factor is 1.52 andthe indirect cost factor is 0.31. Estimatethe total plant cost if the indirect costfactor applies to (a) the delivered-equipment cost only, and (b) the totaldirect cost.

The total plant cost is the sum of direct and indirect costs.

$4.6 million. The direct cost factor is 1.52 and the indirect cost factor is 0.31. Estimate the total plant cost if the indirect cost factor applies to (a) the delivered- equipment cost only, and (b) the total direct cost.

$4.6 million. The direct cost factor is 1.52 and the indirect cost factor is 0.31. Estimate the total plant cost if the indirect cost factor applies to (a) the delivered- equipment cost only, and (b) the total direct cost.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q11.5. The delivered-equipment cost for a
fully equipped CNC machining system is
$4.6 million. The direct cost factor is 1.52
and the indirect cost factor is 0.31.
Estimate the total plant cost if the indirect
cost factor applies to (a) the delivered-
equipment cost only, and (b) the total
direct cost.
Show transcribed image text Q11.5. The
delivered-equipment cost for a fully
equipped CNC machining system is $4.6
million. The direct cost factor is 1.52 and
the indirect cost factor is 0.31. Estimate
the total plant cost if the indirect cost
factor applies to (a) the delivered-
equipment cost only, and (b) the total
direct cost.

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