The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago.

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago. If the power-sizing exponent is 0.69 find the following:

1) Calculate the cost of 30 hp motor for 5 years ago.

2) Calculate the cost of 30 hp motor today.

Solutions

Expert Solution

The cost of 15 hp motor was $ 25000 , 5 years ago

We need find out the cost of 30 hp motor ...5years ago

: 15 hp motor =$25000

For 30 ho motorist means double the no of quantity .

25000/15= 1666.66 fmv or actual cost

Here fmv stands for fair market value

So the cost of 1 ho motor is $1666.66

Therefore 30×1666.66=49999.9 or 50000.

We can round it off with $50000

The cost of 30 hp motor is $50000 we can calculate the estimated cost is 0.69

Then 0.69 ×25000=17250

17250 /15= 1150 similarly

1275 for1 st year

1420 for 2nd year

1585 for 3rd yea

1730 for 4th year

1810 tor 5th year

As the cost index value is 1810 and 1330 for current or present value , and power sizing exponent or estimate cost is 0.69

The cost of inflation is high as comparable to 1666.669

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is...

The cost of 15 hp motor 5 years ago was 25000$. Today cost index value is 1810 and 1330 was 5 years ago. If the power-sizing exponent is 0.69 find the following: 1) Calculate the cost of 30 hp motor for 5 years ago. 2) Calculate the cost of 30 hp motor today.

You want to have $25000 saved 5 years from today in order to make a down...

You want to have $25000 saved 5 years from today in order to make a down payment on a house. To fund this, you will make deposits each week from your paycheck into an account that will earn 4.88 percent compounded weekly. How much must you deposit each week? a. $90.61 b. $84.94 c. $87.22 d. $93.44 e. 96.15

a water pumping company wants to purchase an electric motor rated at 15 Hp for 1000$(...

a water pumping company wants to purchase an electric motor rated at 15 Hp for 1000$( 1 HP= 0.7457kw ). the service life of motor is known to be 10 years with negligible salvage value.its full load efficiency is 85%. the cost of energy is 0.08$ per kWhr. the intended of the motor is 4000 hours per year .Determine the present worth for the total cost of owning and operating the motor at 10% interest rate A-19,695 $ B- 26,875...

a 240v, 4pole shunt motor running at 1000 r.p.m gives 15 hp with an armature current...

a 240v, 4pole shunt motor running at 1000 r.p.m gives 15 hp with an armature current of 50 A and field current of 1 A. the armature winding is wave connected and has 540 conductors. the armature resistance is 0.1 ohm and drop at each brush is 1v. find (i) useful torque, (ii) the total torque (iii) useful flux per pole, (iv) iron and friction losses

Please calculate the ownership cost per hour for a motor grader powered by a 190 HP...

Please calculate the ownership cost per hour for a motor grader powered by a 190 HP diesel engine based on the straight line method of depreciation and on the following data: Operating factor 50% Purchase price $175,000 (including tires) Freight charges $1,500 Estimated salvage value $17,500 Useful life 7 years Hours used per year 1,800 Maintenance & repairs 125% of annual depreciation Equipment overhead rate 11% of average annual investment Diesel price $1.45 per gallon Fuel Cost = $102 16.53...

the cost index ten years ago was 128, a nuclear centrifuge costs $37000. the centrifuge had...

the cost index ten years ago was 128, a nuclear centrifuge costs $37000. the centrifuge had a capacity of seperating 3600 gallons of ionized solution per hour. today it is desired to build a centrifuge with a capacity of 7800 gallons per hour but the cost index now is 380. assuming a power-sizing exponent to reflect economies of scale, x, of 0.65. use the power sizing model to determine the approximate cost (expressed in today's dollars) of the new reactor.

four years ago, tom had $17,200 in his account. in 5 years fron today he expects...

four years ago, tom had $17,200 in his account. in 5 years fron today he expects to have $41,600. If he has earned and expects to earn the same return each year from 4 years ago to 5 years from today, then how much does he have today? A. $25,468 B. $28,044 C. $28,094 D. $11,616 E none are within $20 of the tight andwrt

1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What...

1a) You have an opportunity to invest $25000 today and receive $35000 in 4 years. What is the expected annual return in percentage terms (or yield)? b) Regarding your answer in (a), please explain if your answer has comprehended the effect of the investment’s value compounding in value or whether you have used a methodology that ignores compounding. In other words is your answer in (a) above a compound return or not? c) You invested $25000 in the ordinary shares...

Daisy bought a piece of land 3 years ago for $1. Today the fair market value...

Daisy bought a piece of land 3 years ago for $1. Today the fair market value of the land is $100 and she transfers it to Flower Inc in exchange for all 100 shares of Flower’s voting common stock worth $100. There are no other shareholders Does Daisy recognize gain on the transfer? What is Daisy's basis in the stock? What is Daisy’s holding period in the stock? What is Flower’s basis in the land? What is Flower’s holding period...

Forty years ago, a gallon of gas cost $1.20. Today, a gallon of gas costs $2.60....

Forty years ago, a gallon of gas cost $1.20. Today, a gallon of gas costs $2.60. Suppose that the gas price increase has been entirely due to inflation. a. Calculate the annual inflation rate. b. Today, you plan to make a cash purchase for a new car. The Model K costs $24,000 and you estimate the car will last 10 years and require 600 gallons per year. The Model M costs $28,000 but gets better mileage, so it will only...

Subjects