The purchase price of a natural gas-fired commercial boiler (capacity X) was $180,000 eight years ago. Another boiler of the same basic design, except with capacity 1.38X, is currently being considered for purchase. If it is purchased, some optional features presently costing $26,000 would be added for your application. If the cost index was 165 for this type of equipment when the capacity X boiler was purchased and is 224 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler? The purchase price for the new boiler is S (Round to the nearest dollar.)

The purchase price of a natural gas-fired commercial boiler (capacity X) was $180,000 eight years ago. Another boiler of the same basic design, except with capacity 1.38X, is currently being considered for purchase. If it is purchased, some optional features presently costing $26,000 would be added for your application. If the cost index was 165 for this type of equipment when the capacity X boiler was purchased and is 224 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler? The purchase price for the new boiler is S (Round to the nearest dollar.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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