Estimate the purchase price for the new boiler

Reference no: EM13188350

The purchase price of a natural gas- fired commercial boiler (capacity X) was $181,000 eight years ago. Another boiler of the same basic design, except with capacity 1.42X, is currently being considered for purchase. If it is purchased, some option feature presently costing $28,000 would be added for your application. If the cost index was 162 for this type of equipment when the capacity X boiler was purchased and is 221 now, and the applicable cost capacity factor is 0.8, What is your estimate of the purchase price for the new boiler?

Reference no: EM13188350

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