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)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter8: Cost Analysis
Section: Chapter Questions
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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 capac
of 550.000 gallons per year?
The estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year is $ (Round to the nearest ten thousands)
Transcribed Image Text: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 capac of 550.000 gallons per year? The estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year is $ (Round to the nearest ten thousands)
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