Estimate the cost in 2018 of a 1000-horsepower steam turbine air compressor if a 200-horsepower unit costs $160,000 in 1999. The exponent in the cost capacity equation is 0.35 and the equipment cost index increased by 35% over that time period.
What will be an ideal response?
C2 in 1999 = 160,000 (1000/200)^0.35
= $281,034
C2 in 2018 = 281,034 (1.35/1)
= $379,396
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