The total cost of a sewage treatment plant with a capacity of 50 million gallons per day completed 1981 for a new town in Colorado was $4.5 million. It was proposed that a similar treatment plant with a capacity of 80 million gallons per day be built in another town in New Jersey for completion in 1985. For additional information given below, make a screening estimate of the cost of the proposed plant.

1) In the total construction cost in Colorado, an item of $300,000 for site preparation is not typical for similar plants.

2) The variation of sizes for this type of treatment plants can be approximated by the exponential law with m = 0.5.

3) The inflation rate was approximately 5% per year from 1981 to 1985.

4) The locational indices of Colorado and New Jersey areas are 0.95 and 1.10, respectively, against the national average of 1.00.

5) The installation of a special equipment to satisfy the new environmental standard cost an extra $200,000 in 1985 dollar for the New Jersey plant.

6) The site condition in New Jersey required special foundation which cost $500,00 in 1985 dollars.

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