Calculate an estimate of the new tank cost today

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The relevant cost index was 120 4 years ago. The cost then for a gas station tank of 1,500 gallons was $40,000. We want to now purchase one size 4,500 gallons but the purchased price cost index is now 300. Assuming a power law size model with exponent 0.75 to account for the size difference, Calculate an estimate of the new tank cost today.

Reference no: EM13734266

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Starting to make gismos at an initial production cost : Manufacturer A is starting to make Gismos at an initial production cost of $95 for the first unit and has been lowering the cost with a learning rate of 79 percent. Manufacturer B also started this year with an initial production cost of $288/unit wi..

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