3-41. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Select the closest answer. (3.4) (a) $4,618,000 (b) $10,623,000 (d) $14,891,000 (c) $14,342,000 Reference Size Reference Cost Cost-Capacity Factor Equipment New Design Size Finishing machine Jet dyer Steam dyer 150 yd/min 200 yd/min 100 yd/min $900,000 $1,125,000 $750,000 200 yd/min 450 yd/min 175 yd/min 0.92 0.87 0.79

3-41. A small textile plant was constructed in 2004. The major equipment, costs, and factors are shown below. Estimate the cost to build a new plant in 2014 if the index for this type of equipment has increased at an average rate of 12% per year for the past 10 years. Select the closest answer. (3.4) (a) $4,618,000 (b) $10,623,000 (d) $14,891,000 (c) $14,342,000 Reference Size Reference Cost Cost-Capacity Factor Equipment New Design Size Finishing machine Jet dyer Steam dyer 150 yd/min 200 yd/min 100 yd/min $900,000 $1,125,000 $750,000 200 yd/min 450 yd/min 175 yd/min 0.92 0.87 0.79

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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