The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, and only the direct cost factor applies to delivered equipment cost, the total plant cost estimate is approximately: (a) $2,034,500 (b) $2,401,230 (c) $2,684,500 (d) $2,983,000

The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, and only the direct cost factor applies to delivered equipment cost, the total plant cost estimate is approximately: (a) $2,034,500 (b) $2,401,230 (c) $2,684,500 (d) $2,983,000

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

See similar textbooks

Similar questions

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 a fully equipped CNC machining system is $1.6 million. The direct cost factor is 1.52 and the indirect cost factor is 0.31. Estimate the total plant cost if the indirect cost factor applies to (a) the delivered equipment cost only, and (b) the total direct cost.
A chemical engineer at Western Refining estimated the total cost for a diesel fuel desulfurization system at $2.3 million. If the direct cost factor is 1.55 and the indirect cost factor is 0.43, what is the total equipment cost? Both factors apply to delivered equipment cost.
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
Low, medium, and high cost estimates for a 30,000 ft2 apartment building in zip code 79912 are $3,111,750, $3,457,500, and 4,321,875, respectively. (a) What is the cost per square foot for the medium cost estimate, and (b) what is the percent increase between low and high cost per square foot estimates?
The cost for construction of a desulfurization system for flue gas from boilers at a 600 MW power plant was estimated to be $250 million. If a similar system for a smaller plant had a cost of $55 million and the exponent in the cost-capacity equation is 0.67, what is the size of the smaller plant that served as the basis for the cost projection?
The cost for implementing a manufacturing process that has a capacity of 6000 units per day was $550,000. If the cost for a plant with a capacity of 100,000 units per day was $3 million, what is the value of the exponent in the cost-capacity equation?
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.
In the bottom-up approach to cost estimating, the:a. required price is an input variable.b. cost estimates are an output variable.c. required price is an output variable.d. both (a) and (b) are correct.
Equipment necessary to manufacture adjustable ball-lock pins for pulling two components together had a cost of $185,000 when the M&S Equipment Cost Index was 1375.4. What is the cost estimate for a similar system when the index value is 1634.9?
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.
Estimate the cost in 2018 of a 1000-horsepower steam turbine air compressor if a 200-horsepower unit costs $160,000 in 1999. The exponent in the cost capacity equation is 0.35 and the equipment cost index increased by 35% over that time period.