1. Business
  2. Economics
  3. q7 use a combined cost index and the powersizing cost...

Question: q7 use a combined cost index and the powersizing cost...

Question details

Q7. Use a combined cost index and the power-sizing cost estimating model to estimate the current cost of a piece of equipment that has 60 % more capacity than a similar piece of equipment that cost AED 300,000 five years ago. The appropriate power-sizing exponent for this type of equipment is 0.8, and the ratio of the cost indexes (current to 5 years ago) is 1.24 (Note that this is more complex than the previous questions)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution