Question: Please solve the below question step by step and show me how to approach the linear interpolation - I already know the solution - I

Please solve the below question step by step and show me how to approach the linear interpolation - I already know the solution - I am looking for some who have the talent and can explain this question to me through clear writing and demonstration

Please solve the below question step by step and

In making a preliminary estimate of a chemical processing plant, several major types of equipment are the most significant parameters in affecting the installation cost. The cost of piping and other ancillary items for each type of equipment can often be expressed as a percentage of that type of equipment for a given capacity. The standard costs for the major equipment types for two plants with different daily production capacities are as shown in Table in the next slide. It has been established that the installation cost of all equipment for a plant with daily production capacity between 100,000 bbl and 400,000 bbl can best be estimated by using linear interpolation of the standard data. WWW Cost Data for Equipment and Ancillary Items Equipment Equipment Cost ($1000) type 100,000 bbl 400,000 bb! Furnace 3,000 10,000 Tower 2,000 6,000 Drum 1,500 5,000 Pump, etc. 1,000 4,000 Cost of ancillary items as % of equipment cost ($1000) 100,000 bb! 400,000 bbl 40% 30% 45% 35% 50% 40% 60% 50% A new chemical processing plant with a daily production capacity of 200,000 bbl is to be constructed in Memphis, TN in four years. Determine the total preliminary cost estimate of the plant including the building and the equipment on the following basis: The installation cost for equipment was based on linear interpolation from the following table, and adjusted for inflation for the intervening four years. We expect inflation in the four years to be similar to the period 2016-2020 and we will use the GNP Deflator index. The location index for equipment installation is 0.95 for Memphis, TN, in comparison with the standard cost. An additional cost of $500,000 was required for the local conditions in Memphis, TN

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