Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 15

A small company bought a 250-hp compressor in 1998 for $3000 when the M S equipment cost index had a value of 1061.9. If the exponent in the cost-capacity equation is 0.32 and the M S index value was 1449.3 in 2008, the cost of a 500-hp compressor in 2008 was closest to:
A) $3744
B) $4094
C) $4627
D) $5110