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Question: the cost of a 300 tons day plant was r350...

Question details

The cost of a 300 tons/ day plant was R350 million in 2009. The same plant with a capacity of 500 tons/day is estimated to cost R500 million (also in 2009)

1. Determine the scaling factor in the cost capacity equation for this particular plant.

2. Would it be better to build two (2) 500 tons/day or a single 1000 tons/day plant in 2016?
Justify your answer by determining the percentage difference in capital cost for this two options.

Given Cost Indices

2009     522

2016.     569

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