Question

The purchase price of a natural​ gas-fired commercial boiler​ (capacity X) was ​$ eight years ago. Another boiler of the same basic​ design, except with capacity ​X, is currently being considered for purchase. If it is​ purchased, some optional features presently costing ​$ would be added for your application. If the cost index was for this type of equipment when the capacity X boiler was purchased and is ​now, and the applicable cost capacity factor is ​, what is your estimate of the purchase price for the new​ boiler?

Answer 1

=352,931.20

Step-by-step explanation:

Calculation for the estimate of the purchase price for the new boiler

Purchase price of new boiler = 181,000* (221 / 162) * (1.42)^0.8 + 28,000

Purchase price of new boiler =181,000*1.36*1.32+28,000

Purchase price of new boiler =32,4931.2+28,000

Purchase price of new boiler =352,931.20

Therefore the estimate of the purchase price for the new boiler will be 352,931.20