Question

you have been asked to estimate the costs for a project to build an industrial power plant. based on historical data, the steam turbine accounts for 30 percent of the total costs for the plant. if the steam turbine costs $300,000, the expected top-down estimated cost for this project would be .

Answer 1

The expected top-down estimated cost for the project is $1,000,000.

Step-by-step explanation:

Based on historical data, the steam turbine accounts for 30% of the total costs for the industrial power plant. If the steam turbine costs $300,000, we can estimate the total cost of the project using a top-down approach.

To find the estimated total cost, we divide the cost of the steam turbine by its percentage of the total costs:

Total cost = $300,000 / 0.30

Total cost = $1,000,000

Therefore, the expected top-down estimated cost for this project would be $1,000,000.