Cost to purchase a new piece of production equipment

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Reference no: EM131004883

You have been asked by your boss to estimate the cost to purchase a new piece of production equipment. The company purchased this same type of equipment in the past for $15,000. The original equipment had a capacity of 2,000 units, while the new equipment has a capacity of 1,000 units. The power-sizing exponent for this type of equipment is 0.28. In addition, the cost index for this type of equipment was 126 when the original unit was purchased and is now 160.

Reference no: EM131004883

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