The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 250.000 gallons per year is $6.6 million. The costcapacity factor for this particular plant technology is 0 62 for capacities ranging from 200.000 gallons per year to 600.000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a capam of 550.000 gallons per year? The estimated capital investment for a similar ethanol plant with a capacity of 550.000 galons per year is $ (Round to the nearest ten thousands)

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.