Homework answers / question archive / The price of an industrial equipment with a rated capacity of 500 W was $200,000 USD ten years ago

The price of an industrial equipment with a rated capacity of 500 W was $200,000 USD ten years ago

Economics

Share With

The price of an industrial equipment with a rated capacity of 500 W was $200,000 USD ten years ago. Today we want to estimate the price of a similar item. What would be the best overall estimation technique to utilize in this case? a) If we could investigate the index at the time when the price is known, and the current index value, then the best approach is to use indexes. b) If we can investigate the cost-capacity factor, then the best approach is to use power sizing technique. c) Unit technique would work best in this scenario, since 10 years is a small number. d) Learning Curve is the most appropriate model for this scenario. e) Work Breakdown Structure is the most appropriate model for this scenario. 8) (4 points) The best equation to find Present value in the following Cash Flow Diagram is: i=12% per year month ot 550KD 700KD End of Year a) P = -550(P/F,12%,5)+700(P/A,12%,6)(P/F,12%,6) b) P = 700(F/P,12%,6)+550(A/P,12%,6)(F/P,12%,6) c) P = 550(P/F,12%,5)+700(A/P,12%,6)(P/F,12%,6) d) P = -700(P/F,12%,5)-550(P/A,12%,6)(P/F,12%,6) e) P = -700(F/P, 12%,5)-550(A/P, 12%,6)F/P,12%,6)