Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100 can handle twice the volume of a VMIC-50.) Cost of VMIC-100 today $250,000 Cost of VMIC-50 5 years ago $95,000 VMIC equipment index today = 350 VMIC equipment index 5 years ago = 235

Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100 can handle twice the volume of a VMIC-50.) Cost of VMIC-100 today $250,000 Cost of VMIC-50 5 years ago $95,000 VMIC equipment index today = 350 VMIC equipment index 5 years ago = 235

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

Padre works for a trade magazine that publishes lists of power-sizing exponents (PSE) that reflect economies of scale for developing
engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants
to list its PSE value in his next issue. Given the following data calculate the PSE value that Padre should publish. (Note: The VMIC-100
can handle twice the volume of a VMIC-50.)
Cost of VMIC-100 today $250,000
Cost of VMIC-50 5 years ago $95,000
VMIC equipment index today = 350
VMIC equipment index 5 years ago = 235

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