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Question 4-20 Points: (Power-Law-and-sizing) A diesel engine manufacturer produces a line of engines of different capacities for the tru Current products include a 300 and

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Question 4-20 Points: (Power-Law-and-sizing) A diesel engine manufacturer produces a line of engines of different capacities for the tru Current products include a 300 and 400 hp engines, and the manufacturer is considering t production of a 600 hp engine of the same basic design. The production costs of the curre are $4000 and $5000 respectively 1. Estimate the cost of the 600 hp engine using the Power Law and Sizing function 2. If the production costs of the 300 hp and 400 hp engines are based on earlier data engines were first built, five years ago, at that time the Cost Inflation Index was 130, where index is 150, provide a revised estimate of the of the cost in (1) to include the inflation eff 3. If the company would also include a Fuel Cell for standby power, which currently c provide a final estimate of the engine cost

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