Five years ago-when the relevant cost index

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Reference no: EM131807837

Five years ago, when the relevant cost index was 120, a nuclear centrifuge cost $40,000. The centrifuge had a capacity of separating 1500 gallons of ionized solution per hour. Today, it is desired to build a centrifuge with capacity of 4500 gallons per hour, but the cost index now is 300. Assuming a power-sizing exponent to reflect economies of scale, x, of 0.75, use the power-sizing model to determine the approximate cost (expressed in today's dollars) of the new reactor.

Reference no: EM131807837

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