Answer -
0.60 is the right answer.
Ignoring the effect of inflation over this 5-year period, we are told that
Price of 5000 gallon tank / Price of 2000 gallon tank = (5000/2000)^power sizing exponent
= 86643/50000 = 2.5^power sizing exponent
Lests assume the give choice
1.73286 = 2.5^0.60
Hence Power sizing exponent = 0.60
Question 6 15 pts 2000-gallon metal tank to store hazardous materials was bought 5 years ago...
#6) A 2000-gallon metal tank to hold hazardous materials cost $200,000 when it was fabricated 15 years ago. What would a 5,000-gallon tank cost today if the power-sizing exponent is 0.575 and the construction cost index for such facilities has increased from 120 to 400 over the last 15 years? a $337,175 b. $666,667 c. $1,123,917 d. $200,000
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.
Question1 1 pts A 8,000 gallon storage tank was purchased for $160,000 12 years ago. How much would a 12,000 gallon storage tank cost today if the power-sizing exponent were 0.75 and the cost index increased from 150 to 220 over the last 12 years. Express your answer in $to the nearest $1,000.
A 8,000 gallon storage tank was purchased for $220,000 12 years ago. How much would a 12,000 gallon storage tank cost today if the power-sizing exponent were 0.71 and the cost index increased from 150 to 220 over the last 12 years. Express your answer in $ to the nearest $1,000
Reference: Table 1 Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Cost Selling price $167 | Materials and purchased parts | $25/unit Direct Labor | 2 hrs at $20 per hour Fixed Cost $1,400,000 2.1 The breakeven volume for this product is A) 14,433 B) 8,383 C) 20,000 D) None of these 2.2. To reduce the breakeven volume to 15,000 units, what should be the...