Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987

Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987 a plant in Alabama, that manufactured 10,000 units per hour, cost $12,000,000 to construct. This type of construction is estimated to have a cost capacity exponent of 0.65. The cost index for Idaho in 2018 is 718, and it was 128 in 1987. The value of the Alabama cost index in 2018 is 770, but we do not know its value for 1987. We expect costs to increase 8% between 2018 and 2020. What is the best estimated cost for electrical installation in a plant built in 2020 in Idaho to produce 15,000 units per hour.


Step by Step Solution

3.47 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Document Format ( 2 attachments)

PDF file Icon
6098feea82ddf_205927.pdf

180 KBs PDF File

Word file Icon
6098feea82ddf_205927.docx

120 KBs Word File

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting IFRS

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

3rd edition

1119372933, 978-1119372936

More Books

Students also viewed these Accounting questions

Question

Is it eyewitness or hearsay evidence?

Answered: 1 week ago

Question

What is the nature of a sale on consignment?

Answered: 1 week ago

Question

5. Describe the choice delay and stop signal tasks.

Answered: 1 week ago