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Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution Today, it is desired to build a centrifuge with a capacity of 4500 gallons per hour, but the cost index is now 300. Assuming a power-sizing exponent to reflect economies of scale, x, of .075, us the power-sizing model to determine the approximate cost (expressed in todays dollars) of the new reactor. per hour.

Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution Today, it is desired to build a centrifuge with a capacity of 4500 gallons per hour, but the cost index is now 300. Assuming a power-sizing exponent to reflect economies of scale, x, of .075, us the power-sizing model to determine the approximate cost (expressed in todays dollars) of the new reactor. per hour.

Essentials Of Investments
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
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Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution Today, it is desired to build a centrifuge with a capacity of 4500 gallons per hour, but the cost index is now 300. Assuming a power-sizing exponent to reflect economies of scale, x, of .075, us the power-sizing model to determine the approximate cost (expressed in todays dollars) of the new reactor. per hour.
Transcribed Image Text:Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution Today, it is desired to build a centrifuge with a capacity of 4500 gallons per hour, but the cost index is now 300. Assuming a power-sizing exponent to reflect economies of scale, x, of .075, us the power-sizing model to determine the approximate cost (expressed in todays dollars) of the new reactor. per hour.
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