The delivered equipment cost for setting up a production and assembly line for high-sensitivity, gas-damped accelerometers is $650,000. If the direct cost and indirect cost factors are 1.36 and 0.31, respectively, and both factors apply to delivered equipment cost, the total plant cost estimate is approximately: (a) $2,034,500 (b) $1,815,500 (c) $1,735,500 (d) $1,183,000

The delivered equipment cost for setting up a production and assembly line for high-sensitivity, gas-damped accelerometers is $650,000. If the direct cost and indirect cost factors are 1.36 and 0.31, respectively, and both factors apply to delivered equipment cost, the total plant cost estimate is approximately: (a) $2,034,500 (b) $1,815,500 (c) $1,735,500 (d) $1,183,000

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

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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The delivered equipment cost for setting up a production and assembly line for high-sensitivity, gas-damped accelerometers is $650,000. If the direct cost and indirect cost factors are 1.36 and 0.31, respectively, and both factors apply to delivered equipment cost, the total plant cost estimate is approximately:a. $2,034,500b. $1,735,500c. $1,384,500d. $1,183,000
A mini-wind tunnel for calibrating vane or hotwire anemometers costs $3750 in 2011 when the Marshall and Swift (M&S) equipment cost index value was 1490.2. If True-Tech Instruments estimated the cost of a wind tunnel twice as large to be $10,200 in 2016, what did it expect the equipment cost index value to be, provided the equipment cost increased accordingly? The cost-capacity equation exponent is 0.89.
If the cost of an imported high-speed assemblyline robot is $80,000 and the in-country cost for one with twice the capacity is $120,000, the value of the exponent in the cost-capacity equation is closest to: (a) 0.51 (b) 0.58 (c) 0.62 (d) 0.69
Estimate the cost of a 0.75 million gallon per day (MGD) induced-draft packed tower for air-stripping trihalomethanes from drinking water if the cost for a 2-MGD tower is $153,200. The exponent in the cost capacity equation is 0.58.
The Department of Defense uses area cost factors (ACFs) to compensate for differences in construction costs in different parts of the country and world. The ACF for Andros Island in the Bahamas is 1.70 while the ACF for Rapid City, South Dakota, is 0.93. If a cold storage processing warehouse costs $1,350,000 in Rapid City, what is the estimated cost of the same facility on Andros Island?
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If the cost of an 8000-operation-per-second assembly line robot is $80,000 and the cost for one with twice the capacity is $120,000, the value of the exponent in the cost-capacity equation is closest to:a. 0.51b. 0.58c. 0.62d. 0.69
The cost of an electrode position control system in an electric arc furnace was $16,000 when the applicable equipment cost index had a value of 1192. If the current index value is 1364 and the exponent in the cost-capacity equation has a value of 0.65, the estimated cost now of a similar system twice as large is closest to: (a) $17,465 (b) $21,545 (c) $28,730 (d) $36,130
The equipment for applying specialty coatings that provide a high angle of skid for the paperboard and corrugated box industries has a delivered cost of $390,000. If the overall cost factor for the complete system is 3.96, the total plant cost is approximately: (a) $955,500 (b) $1,054,400 (c) $1,154,400 (d) $1,544,400
A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of an e-commerce warehouse facility in the south of the country. The firm completed a similar project in 2012 that had a construction cost of $68 million, and it wants to use the ENR Construction Cost Index (CCI) to update the cost. If the index value in 2012 was 8802 and today it is 11,981, determine the estimated cost of the facility today.
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