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Remerowski Corporation Inc. asks you to estimate the cost to purchase a new piece of production equipment in the past for $10000 the original equipment had a capacity of 2,000 units, while the new equipment has a capacity of 1000 units. The power-sizing exponent for this kind of equipment is 0.28. In addition, the cost index for this kind of equipment is 126 when the original unit was purchased and is now160. If Remerowski usesan 8 percent annual interest rate to evaluate purchases estimate the cost to purchase the new piece.

Microeconomics, Economics

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