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About Industrial Economics: Dr. Syed Imran Ali
Industrial Economics Course No. 508 discusses methods for estimating capital costs, including equipment costs. [1] Equipment costs can be estimated using past cost data and indexes to correct for inflation over time. Common cost indexes published annually include the Engineering News-Record Construction Index and the Marshall & Swift Installed Equipment Index. [2] The size or capacity of equipment also affects its cost. A logarithmic relationship called the "sixteenths rule" can be used to estimate the cost of equipment based on its capacity, using a cost exponent that typically ranges from 0.3 to 1.2. [3] Examples are provided to demonstrate estimating equipment costs using a cost index to correct for inflation over
Detailed Information
| Author: | ['bilal sheikh'] |
|---|---|
| Publication Year: | 2021 |
| Pages: | 13 |
| Language: | English |
| Format: | |
| Price: | FREE |
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