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.

Expert Solution

1.

Cost of 30 HP motor 5 yrs ago = 25000*(30 / 15)^0.69

= 25000*(2)^0.69

= 25000*1.6132835

= 40332.09

2.

Cost of 30 HP motor today = 40332.09* (1810 / 1330) = 54888.03

Rahul Sunny answered 2 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.

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