Question: Problem 3 A cost estimate is requested for a 34-cm-dia disk laser amplifier equipment. A previous design of 22 cm dia was estimated for a

Problem 3 A cost estimate is requested for a 34-cm-dia disk laser amplifier equipment. A previous design of 22 cm dia was estimated for a cost of $16,459,000. The annual Producer Price Index = 7.5% for equipment, and will be used for a 3-year escalation. A value of X = 0.7 is adopted. Find the cost of the new equipment. (Hint: Consider the PPI to have a compounding effect on cost.)

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