JOEFRESH10
23.06.2020 •
Mathematics
A 50 million gallon per day (mgd) sanitary water treatment plant was constructed in 1990 at Boston, MA for 150 million dollars. A similar treatment plant with is planned for construction in 2025 in Springfield, MA. The new plant will have a capacity of 30 mgd. Determine the following:A) The estimated cost of the new treatment plant in 1990 dollars. Use Cost Capacity Factor Method and assume p = .75. Assume city-cost indices are: Boston = 115, Springfield = 102. (5) B) The estimated cost of the new treatment plant in 2025 dollars. According to the 2025 projected cost index = 235.6 and the historical cost index for 1990 was 94.3.
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C
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