Question
Suppose that purchased and installation costs of some large pieces of equipment are given as a function of weight rather than capacity (as normally is
Suppose that purchased and installation costs of some large pieces of equipment are given as a function of weight rather than capacity (as normally is the case). It is given that the 1980 cost for an aluminium vessel weighing 230,000 lb was $700,000. For a size range from 200,000 to 1,000,000 lb, the installed cost-weight exponent for aluminium vessels is 0.93 according to 1980 prices. If an aluminium vessel weighing 800,000 lb is required in 2020, what was the capital invested for installation of such a vessel? What would be the cost of the vessel if it were constructed out of 316 stainless steel material?
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