the cost per square meter last year? 226] An refinisher of antiques named Constance has been so successful with her small business that she is plan- ning to expand her shop with all new equipment. She is going to start enlarging her shop by purchasing the following equipment. Cost of Power New Original Original Sizing Equipment Equipment Equipment Exponent Size Varnish bath S01 75 1 1.5 hp 12 m 3500 0.80 Power scraper 3/4 hp 250 0.22 Paint booth 3m3 3000 0.6 What would be the net cost to Constance to obtain this equipment-assume that she can trade the old equip- ment in for 15% of its original cost. Assume also that the relative price to purchase the equipment has not changed over time (that is, there has been no inflation in equipment prices). 2-27 Refer to Problem 2-26 and now assume the prices for the equipment that Constance wants to replace have not been constant. Use the cost index data for each piece of equipment to update the costs to the price that would be paid today. Develop the overal cost for Constance, again assuming the 15% trade-in allowance for the old equipment. Use any necessary data from Problem 2-26 Cost Index When Originally Purchased 154 780 49 Cost Index Today Original Equipment Varnish bath Power scraper Paint booth 900 76