# 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**)**