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Question - Electrical installation in a process plants is 60% of direct equipment costs. Process plants have a Lang factor of 4.6 (total construction)/(direct equipment). In 1987 a plant in Alabama, that manufactured 10,000 units per hour, cost $12,000,000 to construct. This type of construction is estimated to have a cost capacity exponent of 0.65. The cost index for Idaho in 2018 is 718, and it was 128 in 1987. The value of the Alabama cost index in 2018 is 770, but we do not know its value for 1987. We expect costs to increase 8% between 2018 and 2020. What is the best estimated cost for electrical installation in a plant built in 2020 in Idaho to produce 15,000 units per hour.
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