A 10 HP motor costs $1000 today. What is your cost estimate for a 20 HP...

Question

Question

A 10 HP motor costs $1000 today. What is your cost estimate for a 20 HP motor today?

Answer 1

Answer #1

A doubling of the Horsepower (HP) of the motor would also lead to a doubling of its cost.

Thus, if a 10 HP costs $1000

Then a 20 HP motor would cost close to 2(1000) = $2000

The exact price would be different for each firm based on their pricing strategies. This value of $2000 is just a close approximation.

Answer 2

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