Example: The purchase price of a natural gas-fired commercial boiler (capacity X) was $181,000 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 $28,000 would be added for your application. If the cost index was 162 for this type of equipment when the capacity X boiler was purchased and is 221 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler?

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
Section: Chapter Questions
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Example:
The purchase price of a natural gas-fired commercial boiler (capacity X) was
$181,000 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 $28,000 would be
added for your application.
If the cost index was 162 for this type of equipment when the capacity X
boiler was purchased and is 221 now, and the applicable cost capacity factor
is 0.8, what is your estimate of the purchase price for the new boiler?
Transcribed Image Text:Example: The purchase price of a natural gas-fired commercial boiler (capacity X) was $181,000 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 $28,000 would be added for your application. If the cost index was 162 for this type of equipment when the capacity X boiler was purchased and is 221 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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