How construction cost index has increased an average rate

Reference no: EM13238651

if an ammonia plant that produces 500,000 pounds per year cost $2,500,000 to construct eight years ago, what would a 1,500,000 pound per year plant cost now? Suppose that the construction cost index has increased an average rate of 125 per year for the past eight years and that the cost-capacity factor (x) to reflect economy of scale is 0.65.

Reference no: EM13238651

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