The delivered equipment cost for setting up a production and assembly line for two-way floating ball valves is $650,000. If the direct cost and indirect cost factors are 1.82 and 0.31, respectively, and only the direct cost factor applies to delivered equipment cost, the total plant cost estimate is approximately: (choose one)
(a) $2,034,500
(b) $2,401,230
(c) $2,684,500
(d) $2,983,000
CT = [(1 + 1.82)(650,000)](1.31)
= $2,401,230
Answer is (b) $2,401,230
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