The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1192. If the current index value is 1364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large is closest to: (a) $17,465 (b) $21,545 (c) $28,730 (d) $36,130
The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1192. If the current index value is 1364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large is closest to: (a) $17,465 (b) $21,545 (c) $28,730 (d) $36,130
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The cost of an electrode position
an electric arc furnace was $16,000 when the applicable
equipment cost index had a value of 1192.
If the current index value is 1364 and the exponent
in the cost-capacity equation has a value of 0.65,
the estimated cost now of a similar system twice as
large is closest to:
(a) $17,465 (b) $21,545
(c) $28,730 (d) $36,130
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