Instructor's Manual to Accompany Project Management for Engineering and Construction 2nd Edition by Oberlender

Exercise 5

The cost of a 540 cubic feet per hour process unit is $850,000. From historical cost records, the capacity ratio exponent of a process unit is 0.6. Use the capacity ratios raised to an exponent method to determine the estimated cost of a similar process unit with a capacity of 490 cubic feet per hour.