During a major expansion in 2004, DouwallasImport Company

Chapter 15, Problem 15.44

(choose chapter or problem)

During a major expansion in 2004, DouwallasImport Company developed a new processingline for which the delivered equipment cost was$1.75 million. This year, the board of directorsdecided to expand into new markets and expectsto build the current version of the same line.Estimate the cost if the following factors areapplicable: construction cost factor is 0.20, installationcost factor is 0.50, indirect cost factorapplied against equipment is 0.25, and the totalplant cost index has risen from 2509 to 3713 overthe years.

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