4) A plant that was built five years ago required a capital investment of t10 million. The plant index was 155 at the time it was built. You will build a plant that is double the size of the old one. If the plant index now stands at 312, how much would the plant cost? (Use a capacity factor equal to 2/3.)

4) A plant that was built five years ago required a capital investment of t10 million. The plant index was 155 at the time it was built. You will build a plant that is double the size of the old one. If the plant index now stands at 312, how much would the plant cost? (Use a capacity factor equal to 2/3.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 5P

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