eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $25000 would be added for your application. If the cost index was 160 for this type of equipment when the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler?

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20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Q6/ The purchase price of a natural gas-fired commercial boiler (capacity X) was $180000
eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently
being considered for purchase. If it is purchased, some optional features presently costing $25000
would be added for your application. If the cost index was 160 for this type of equipment when
the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is
0.8, what is your estimate of the purchase price for the new boiler?
Transcribed Image Text:Q6/ The purchase price of a natural gas-fired commercial boiler (capacity X) was $180000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some optional features presently costing $25000 would be added for your application. If the cost index was 160 for this type of equipment when the capacity X boiler was purchased and is 220 now, and the applicable cost capacity factor is 0.8, what is your estimate of the purchase price for the new boiler?
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