Business type question dealing with scaling the cost of equipment costs.

The purchase cost of a shell and tube heat exchanger with 100m^2 of heating surface area was $32,720 in 1990. What is the expected purchase cost of a similar heat exchanger with 200 m^2 in 1990, 1993 and 2016? The Marshall Swift WE equipment Index for 1990 and 1994 is 915.1 and 964.2 respectively.

You can use the Marshall & Swift Equipment Index values as given in the problem to move from 1990 to 1993. But the back page of Chemical Engineering no longer provides Marshall & Swift Equipment Index numbers. So, make a jump from the Marshall & Swift Equipment Index to the Chemical Engineering Plant Cost Index (CEPCI) numbers. Here are the Marshall & Swift Equipment Cost Indices (MSCI) and Chemical Engineering Plant Cost Index (CEPCI) starting from 1991.

Transcribed Image Text:

Year MSCI СЕРСІ 1991 930.6 1992 943.1 1993 964.2 1994 993.4 1995 1027.5 1996 1039.1 1997 1056.8 386.5 1998 1061.9 389.5 1999 1068.3 390.6 2000 1089.0 394.1 2001 1093.9 394.3 2002 1104.2 395.6 2003 1123.6 402.0 2004 1178.5 444.2 2005 1244.5 499.6 2006 1302.3 499.6 2007 1373.3 525.4 2008 1449.3 575.4 2009 1468.6 521.9 2010 1457.4 550.8 2011 585.7 2012 584.6 2013 567.3 2014 576.1 2015 556.8 2016 541.7 Year MSCI СЕРСІ 1991 930.6 1992 943.1 1993 964.2 1994 993.4 1995 1027.5 1996 1039.1 1997 1056.8 386.5 1998 1061.9 389.5 1999 1068.3 390.6 2000 1089.0 394.1 2001 1093.9 394.3 2002 1104.2 395.6 2003 1123.6 402.0 2004 1178.5 444.2 2005 1244.5 499.6 2006 1302.3 499.6 2007 1373.3 525.4 2008 1449.3 575.4 2009 1468.6 521.9 2010 1457.4 550.8 2011 585.7 2012 584.6 2013 567.3 2014 576.1 2015 556.8 2016 541.7

Answer rating: 100% (QA)

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