Estimate the cost to purchase the new equipment

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A company purchased a piece of equipment 10 years ago for $10,000. They are trying to purchase a similar type of equipment now The old equipment had a capacity of 2,000 units, white the new one has a capacity of 1,000 units The power sizing exponent for this type of equipment is 0.25. In addition, the cost index tor this type of equipment 10 years ago was 120 and is 180 now. Estimate the cost to purchase the new equipment.

Reference no: EM131159547

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