A mini-wind tunnel for calibrating vane or hotwire anemometers costs $3750 in 2011 when the Marshall and Swift (M&S) equipment cost index value was 1490.2. If True-Tech Instruments estiĀ­mated the cost of a wind tunnel twice as large to be $10,200 in 2016, what did it expect the equipment cost index value to be, provided the equipment cost increased accordingly? The cost-capacity equation exponent is 0.89.

What will be an ideal response?


Find I2016 in Equation [15.4]

10,200 = 3750(2)^(0.89) (I2016/1490.2)
I2016 = 2187.2

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