Y5

A water filtration system in an industrial process was purchased in 2002 at a total cost of $250.000. It is planning to replace after ten years. The cost elements and their corresponding weights are given below. Additional information is given in the accompanying table Average Index Index Index Cost Element Percentage of Total (1992) (2002) (2012) Cost Labor 25 180 220 250 Assembly 35 115 155 175 Equipment 40 135 162 206 a) Calculate a weighted index for water filtration system in 2002. b) Prepare a budget estimate for a water filtration system in 2012. c) What was the price of the water filtration system when it was first bought at 1992