A biotech firm is considering abandoning its old

plant, built 23 years ago, and constructing a new facility

that has 50% more square footage. The original cost of the

old facility was $300,000, and its capacity in terms of

standardized production units is 250,000 units per year. The

capacity of the new laboratory is to be 400,000 units per

year. During the past 23 years, costs of laboratory

construction have risen by an average of 5% per year. If the

cost-capacity factor, based on square footage, is 0.80, what

is estimated cost of new lab?