Estimate the cost today if the cost capacity factor

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A heat exchanger cost $7500 in 2005 and must be replaced soon with a larger unit. The present unit has an effective area of 250 feet and its replacement should have an area of 350 feet. Replacement is anticipated in 2015 when the price index is estimated to be 170 where it was 115 when the exchanger was first purchased. Estimate the cost today if the cost capacity factor is 0.6.

Reference no: EM13851872

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