Problem 2 Six years ago, an 80-kW diesel-electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The plant engineering staff was considering a 120-kW unit of the same general design to power a small isolated plant that would have cost $211,707. Based on the information above the plant engineering staff is considering a 100 kW unit of the same general design to power a small isolated plant. Assume we want to add a which (when isolated and estimated separately) currently costs $13,000. Determine the total cost pre-compressor, of the 100-kW unit.

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
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Problem 2
Six years ago, an 80-kW diesel-electric set cost $160,000. The cost index for this class of
equipment six years ago was 187 and is now 194. The plant engineering staff was considering a
120-kW unit of the same general design to power a small isolated plant that would have cost
$211,707.
Based on the information above the plant engineering staff is considering a 100 kW unit of the
same general design to power a small isolated plant. Assume we want to add a pre-compressor,
which (when isolated and estimated separately) currently costs $13,000. Determine the total cost
of the 100-kW unit.
■
a
profit is desired?
a
THE UNIVERSITY OF
JORDAN
myhp
I
Transcribed Image Text:Problem 2 Six years ago, an 80-kW diesel-electric set cost $160,000. The cost index for this class of equipment six years ago was 187 and is now 194. The plant engineering staff was considering a 120-kW unit of the same general design to power a small isolated plant that would have cost $211,707. Based on the information above the plant engineering staff is considering a 100 kW unit of the same general design to power a small isolated plant. Assume we want to add a pre-compressor, which (when isolated and estimated separately) currently costs $13,000. Determine the total cost of the 100-kW unit. ■ a profit is desired? a THE UNIVERSITY OF JORDAN myhp I
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