Question: Padre works for a trade magazine that publishes. lists of Power-Sizing Exponents (PSE) that reflect economies of scale for developing engineering estimates of various types

Padre works for a trade magazine that publishes. lists of Power-Sizing Exponents (PSE) that reflect economies of scale for developing engineering estimates of various types of equipment. Padre has been unable to find any published data on the VMIC machine and wants to list its PSE value in his next issue. Given the following data (your staff was able to find data regarding costs and sizes of the VMIC machine) calculate the PSE value that Padre should publish.

Cost of VMIC-100 today $100,000

Cost of VMIC-50 5 years ago $45,000

VMIC equipment index today = 214

VMIC equipment index 5 years ago = 151

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