1. What is your estimate of the purchase price of the new boiler?
2. With a 11-year loan of 8% annual interest rate compounded monthly, how much is the monthly loan payment (Please round the answer to the nearest integer)

The purchase price of a natural gas-fired commercial boiler (capacity X) WAS $500,000 eight years ago. Another boiler of the same basic design, except with capacity 1.74X, is currently being considered for purchase. If it is purchased, some optional features presently costing $45,000 would be added for your application. If the cost index was 122 for this type of equipment when the capacity X boiler was purchased and is 155 now, and the applicable cost capacity factor is 0.9