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The total equipment cost for an addition to a pharmaceutical plant is estimated to be $5,000,000. The percentages provided in the Table represent the average expenditures in other cost phases within the project budget. The total cost for the project is most nearly:
Solution: Calculate the total percentage of the items provided:
Total percentage = 70%
Apply the equation:
Total Project Cost = Estimated Equipment Cost / (1 - Percent of Other Costs)
Total Project Cost = $5,000,000/ (1 - .70)
= $16,666,667
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