Estimate the cost of a 40-kw unit of the same general design

Assignment Help Financial Management

Reference no: EM131985151

Six years ago, an 80-kW diesel electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The cost-capacity factor is 0.6.

a. The plant engineering staff is considering a 120-kW unit of the same general design to power a small isolated plant.

Assume we want to add a pre-compressor, which (when isolated and estimated separately) currently costs $18,000. Determine the total cost of the 120-kW unit.

b. Estimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 pre-compressor.

a. Total Cost = $229, 707

b. Total Cost = $127, 512

Reference no: EM131985151

Questions Cloud

Calculate skys income tax refund for year 3 : Sky Company reports a pretax operating loss of $50,000 in Year 3 for both financial reporting and income tax purposes.

Create a button to save the content of listbox to database : Create a button to save the content of the listbox to the database. Create a button to retrieve the content of the table into the listbox.

What is the range of possible values for pacificorp : Based on the multiples for comparable regulated utilities , and the fundamentals for PacifiCorp.

Determine the validity of testimony : What standards does the court use to determine the validity of their testimony?

Estimate the cost of a 40-kw unit of the same general design : Estimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 pre-compressor.

What stage of piaget is : What stage of Piaget's is this? Kendall and her mother play a game where they touch each other's noses and giggle.

What was the basis for the ruling : What was the basis for the ruling? One or two sentences are fine. What was the basis for the dissenting votes? One or two sentences are fine.

Should you purchase this stock from her : You sister is trying to sell you a stock with a current market price of $28. Should you purchase this stock from her?

How do you look at a visual representation of a binary tree : How do you look at a visual representation of a binary tree (the diagram starting with root and ending with leaves) and determine how many levels it has?

User Account

All Pages