Eight years ago the purchase of the companyrsquos generator, Ask an Expert

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Eight years ago, the purchase of the company’s generator was $177,000.00. A new generator is needed presently. Engineer Scot found a similar generator but with capacity 1.35 X. If it is purchased, some optional features presently costing $29,000 would be added to the application. The cost index was 156 when X generator was purchased and is 221 now while the applicable cost capacity factor is 0.9. What is Engineer Scot’s estimate of the purchase price for this new generator?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92100351

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