A small textile plant was constructed in 2004. the major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. select the closest answer.

a) $4,618,000

b) $10,623,000

c) $14,342,000

d) $14,891,000

Equipment: Reference Size: Reference Cost: Cost-Capacity Factor: New Design Size:

Finishing machine 150 yd/min $900,000 0.92 200 yd/min

Jet dyer 200 yd/min $1,125,000 0.87 450 yd/min

Steam dyer 100 yd/min $750,000 0.79 175 yd/min