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(Solution) - The furnace of a boiler in a power plant cost

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The furnace of a boiler in a power plant cost $100,000 five years ago. The furnace had the capacity to produce 70X106 kcal/hour. Now, a furnace with a capacity of 100X10 kcal/hour is desired. With a general price inflation rate of 5% per year, and assuming a cost capacity factor that reflects economies of scale, X, at 0.75, what would the approximate cost of the new furnace be?


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This question was answered on: Jul 11, 2017

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