Homework Answers
15 Years ago plant cost = $10 million
Cost Index 15 Years Ago = 90
Cost Index Now = 150
Current cost of plant?
= 15 Year Ago Cost / Current Cost = 15 Year Ago Index Value / Current Index Value
Current Cost of Earlier Plant = $ 1,666,667
Now to built a new plan twice as large as the first one.
Cost of new plant = Cost of Earlier Plant * (Current Capacity / Previous Capacity)^Capacity Factor
= $ 1,666,667 *(2/1)^1.25
= $ 3,964,023.72
Thanks and hope you like the explanation.
Add Answer to:
Answer the question. Milton Aluminum built a plant 15 years ago at a cost of $10...
Answer the question. Milton Aluminum built a plant 15 years ago at a cost of $10...
Answer the question. Milton Aluminum built a plant 15 years ago at a cost of $10 million. The relevant cost index was equal to 90 (15 years ago), and now is equal to 150. The company is considering building a second plant, twice as large as the first one built 15 years ago. Using the capacity factor of 1.25, what will be the estimated cost of building the second larger plant now?
Question 1 A 200 million L/year bioethanol plant was built in 2009 for $ 376 million....
Question 1 A 200 million L/year bioethanol plant was built in 2009 for $ 376 million. A similar plant was built in 2017 witha capacity of 500 million L/year. 1.1. Use the six-tenths rule to estimate the capital cost of the plant in 201 (5) 1.2. Use the following scaling factors to estimate the capital cost of the plant in 2017. (10) The scaling factors are 0.65-50 000 to 250 000 gal (US)/day 0.58-250 000 to 800 000 gal (US)/day...
A 1000-gallon metal tank cost $200,000 when it was built 12 years ago. What would a...
A 1000-gallon metal tank cost $200,000 when it was built 12 years ago. What would a 2500-gallon tank cost today if the power–sizing exponent is 0.57 and the construction cost index for such facilities has increased from 270 to 900 over the last 12 years? Solve this as follows. i) Consider power-sizing only. ii) Then consider cost index too.
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.)...
A large chemical plant is being planned with the capacity to produce 3 million pounds (lb.) of product annually. Raw-materials costs for the product are $0.45/lb., labor costs are $0.40/lb., and utility costs are $0.25/lb. Overhead costs are 75% of the labor costs. (a) If the company desires a profit equal to 20% of the total product cost, estimate the selling price per pound of product. (b) A similar plant with a capacity of 1.8 million lb. of product was...
QUESTION 1 Acme Logistics provides "less than truck load" (LTL) services throughout the U.S. They have sev...
QUESTION 1 Acme Logistics provides "less than truck load" (LTL) services throughout the U.S. They have several hubs where they use cross-docking to move goods from one trailer to another. Acme built its last hub 10 years ago, and it had 36 dock doors. The cost index at that time was 140, and the total cost was $6 million. Acme plans a new hub that will have 60 dock doors. The cost index now is 195, and Acme will use...
Answer them as soon as possible please D Question 1 3 pts Estimate the cost of...
Answer them as soon as possible please
D Question 1 3 pts Estimate the cost of developing a new clinic with 250000 ft2 space. The appropriate capacity exponent is 0.66. The cost of a clinic with 200000 ft2 was $20 million 5 years ago. The cost index was 200 five years ago, and 235 now. (a) What is the cost of a clinic with 200000 ft2 space now? O $21.3 million $23.5 million O $25.1 million O $29.0 million D...
Question 5 (a) A electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh) The company...
Question 5 (a) A electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh) The company advertises that "green power" is available in 150 kWh blocks for an additional $4 per month per block. (i) A customer uses an average of 300k Wh per month and commits to one monthly 150k Wh (3 marks) (4 marks) (4 marks) block of green power, what is the annual power bill? (ii) What is the average cost per kWh using green power during...
Part 1 (4 marks): The strategy committee for an automobile manufacturer is considering building one or...
Part 1 (4 marks): The strategy committee for an automobile manufacturer is considering building one or two new vehicle assembly plants in Canada. They can either built one 300,000 square meter plant centrally located in Ontario or they can build two plants, one in Nova Scotia and one in British Columbia, with each of those plants being 150,000 square meters in size. The committee has asked you to estimate budget level costs to build a 300,000 m² plant and a...
Imagine you work for a real estate developer. Three years ago, the developer spent $50 million on a plot of land, which is now valued at $60 million. However, the building project has been held up in...
Imagine you work for a real estate developer. Three years ago,
the developer spent $50 million on a plot of land, which is now
valued at $60 million. However, the building project has been held
up in red tape until now, and the company has paid $3 million in
interest on its initial loans. Three years ago they thought they
could build 100 condos for a total of $30 million and sell them for
a total of $100 million. Now,...
Answer the question. $100,000 was deposited in a savings account 8 years ago, and the account earned interest at th...
Answer the question. $100,000 was deposited in a savings account 8 years ago, and the account earned interest at the rate of 10% per year. Assuming the end-of-the-year convention, what is the amount of equal annual withdrawals that can be made to ompletely deplete the fund 15 years from now if the first withdrawal will be made one year from today? B I * Fr
Answer the question. Milton Aluminum built a plant 15 years ago at a cost of $10 million. The relevant cost index was equal to 90 (15 years ago), and now is equal to 150. The company is considering building a second plant, twice as large as the first one built 15 years ago. Using the capacity factor of 1.25, what will be the estimated cost of building the second larger plant now?
Question 1 A 200 million L/year bioethanol plant was built in 2009 for $ 376 million. A similar plant was built in 2017 witha capacity of 500 million L/year. 1.1. Use the six-tenths rule to estimate the capital cost of the plant in 201 (5) 1.2. Use the following scaling factors to estimate the capital cost of the plant in 2017. (10) The scaling factors are 0.65-50 000 to 250 000 gal (US)/day 0.58-250 000 to 800 000 gal (US)/day...
QUESTION 1 Acme Logistics provides "less than truck load" (LTL) services throughout the U.S. They have several hubs where they use cross-docking to move goods from one trailer to another. Acme built its last hub 10 years ago, and it had 36 dock doors. The cost index at that time was 140, and the total cost was $6 million. Acme plans a new hub that will have 60 dock doors. The cost index now is 195, and Acme will use...
Answer them as soon as possible please
D Question 1 3 pts Estimate the cost of developing a new clinic with 250000 ft2 space. The appropriate capacity exponent is 0.66. The cost of a clinic with 200000 ft2 was $20 million 5 years ago. The cost index was 200 five years ago, and 235 now. (a) What is the cost of a clinic with 200000 ft2 space now? O $21.3 million $23.5 million O $25.1 million O $29.0 million D...
Question 5 (a) A electric power distributor charges residential customers $0.10 per kilowatt-hour (kWh) The company advertises that "green power" is available in 150 kWh blocks for an additional $4 per month per block. (i) A customer uses an average of 300k Wh per month and commits to one monthly 150k Wh (3 marks) (4 marks) (4 marks) block of green power, what is the annual power bill? (ii) What is the average cost per kWh using green power during...
Part 1 (4 marks): The strategy committee for an automobile manufacturer is considering building one or two new vehicle assembly plants in Canada. They can either built one 300,000 square meter plant centrally located in Ontario or they can build two plants, one in Nova Scotia and one in British Columbia, with each of those plants being 150,000 square meters in size. The committee has asked you to estimate budget level costs to build a 300,000 m² plant and a...
Imagine you work for a real estate developer. Three years ago,
the developer spent $50 million on a plot of land, which is now
valued at $60 million. However, the building project has been held
up in red tape until now, and the company has paid $3 million in
interest on its initial loans. Three years ago they thought they
could build 100 condos for a total of $30 million and sell them for
a total of $100 million. Now,...
Answer the question. $100,000 was deposited in a savings account 8 years ago, and the account earned interest at the rate of 10% per year. Assuming the end-of-the-year convention, what is the amount of equal annual withdrawals that can be made to ompletely deplete the fund 15 years from now if the first withdrawal will be made one year from today? B I * Fr
Most questions answered within 3 hours.
-
Which of the following statements is consistent with the fact
that capital in an economy is...
asked 8 minutes ago -
Would you hire a white hat hacker or black hat hacker? What are
the pros and...
asked 12 minutes ago -
The CFO is conducting a meeting and she says "we shouldn't
accept this project because we...
asked 14 minutes ago -
How do you obtain the discount rate for an international capital
budgeting problem?
asked 11 minutes ago -
Hi, please read the entire problem.
I need help with the BusOrder class and test for...
asked 13 minutes ago -
Hello, regarding the photoelectric effect I had a couple
questions:
Red light is shining on a...
asked 29 minutes ago -
build a sample navigation Sprite in css ?
asked 27 minutes ago -
Please write a C# program for an concert sale with the
requirements below in Console Form:...
asked 30 minutes ago -
use linux follow instructions , put the commands at each step
and screenshot at each step...
asked 44 minutes ago -
Suppose producer’s production function let q(K, E) =
K0.5E0.5
Suppose producer’s cost function if w=w’ and...
asked 39 minutes ago -
Using the information given below for the fictitious country
"Alpha," find the national saving rate.
...
asked 31 minutes ago -
What is the advantage(s) of using iPS instead of ES cells for stem
cell therapies?
asked 40 minutes ago