A new 21-kW power substation was built in 2016 in Gibson County for $1.4 million. Weakley County, which is nearby, is planning to build a similar though smaller (18-kW) substation in 2019. The inflation rate has averaged 1.5% per year. If the power sizing exponent is .85 for this type of facility what is the estimated cost of construction of the Weakley County substation?

A new 21-kW power substation was built in 2016 in Gibson County for $1.4 million. Weakley County, which is nearby, is planning to build a similar though smaller (18-kW) substation in 2019. The inflation rate has averaged 1.5% per year. If the power sizing exponent is .85 for this type of facility what is the estimated cost of construction of the Weakley County substation?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.6IP

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