Business type question dealing with scaling the cost of equipment costs. The purchase cost of a shell
Question:
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.
Engineering Economy
ISBN: 978-0133439274
16th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling