Question

A small textile plant was constructed in 2008. The major equipment, costs, and factors are shown in the table below . Equipment Reference Size Reference Cost Cost-Capacity Factor New Design Size Finishing machine 150 yd/min $1,135,000 0.87 200 yd/min Jet dyer 200 yd/min $1,420,000 0.82 450 yd/min Steam dyer 100 yd/min $945,000 0.74 175 yd/min Estimate the cost (in dollars) to build a new plant in 2018 if the index for this type of equipment has increased at an average rate of 8 % per year for the past 10 years. (Enter your answer as a number without the dollar $ sign.)

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