The present cost of the model.Given:Cost of 250 gallon reactor 20 years ago was $780,000.Power sizing exponent is 0.56.Increase in construction cost over 20 years is from 141 to 556.

Emily-Jane Bray

Emily-Jane Bray

Answered question

2021-08-20

The present cost of the model.
Given:
Cost of 250 gallon reactor 20 years ago was $780,000.
Power sizing exponent is 0.56.
Increase in construction cost over 20 years is from 141 to 556.

Answer & Explanation

saiyansruleA

saiyansruleA

Skilled2021-08-21Added 110 answers

Calculation:
Write the formula to calculate the cost of reactor.
Cost =(Cost indexpresentCost indexinitial)Power sizing× (Initial cost) ....(I)
Substitute 556 for Cost indexpresent, 141 for Cost indexinitial, 0.56 for Power sizing and $780,000 for initial cost.
Cost =(556141)0.56×780,000
=(3.9433)0.56×780000
=2.15615×780000
=1,681,797
Thus, the cost for 750 gallon reactor is $1.68 million.
Here, option (b) has closest value.
Conclusion:
Thus, the correct option is (b) $1.66 million.

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