Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 3, Problem 11P
To determine

Calculate the cost.

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The purchase price of a natural gas-firedcommercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $28,000 would be added for your application. If the cost index was 162 for this type of equipment when the capacity X boiler was purchased and is 221 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 of a natural​ gas-fired commercial boiler​ (capacity X) was ​$177,000 eight years ago. Another boiler of the same basic​ design, except with capacity 1.42​ X is currently being considered for purchase. If it is​ purchased, some optional features presently costing $28,000 would be added for your application. If the cost index was 169 for this type of equipment when the capacity X boiler was purchased and is 220 ​now, and the applicable cost capacity factor is 0.8​, what is your estimate of the purchase price for the new​ boiler?
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