eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $25000 would be added for your application. If the cost index was 160 for this type of equipment when the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler?
eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $25000 would be added for your application. If the cost index was 160 for this type of equipment when the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![Q6/ The purchase price of a natural gas-fired commercial boiler (capacity X) was $180000
eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently
being considered for purchase. If it is purchased, some optional features presently costing $25000
would be added for your application. If the cost index was 160 for this type of equipment when
the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is
0.8, what is your estimate of the purchase price for the new boiler?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc26065c0-7650-48c5-838c-206a7834e48d%2F15b4d44a-7f3e-42e2-801b-516b9e72e3df%2Fv12p9sw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q6/ The purchase price of a natural gas-fired commercial boiler (capacity X) was $180000
eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently
being considered for purchase. If it is purchased, some optional features presently costing $25000
would be added for your application. If the cost index was 160 for this type of equipment when
the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is
0.8, what is your estimate of the purchase price for the new boiler?
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