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2 years ago

In 2002 Acme Chemical purchased a large pump for

Engineering

1 answer:

Anestetic [448]2 years ago

7 0

Answer:

$151094

Explanation:

Solution

Recall that:

Acme Chemical in 2002 purchased a large pump worth of = 112,000

The estimation for the pump to the industrial pump index is =100

The index in 2002= 212

The current index is = 286

k = is the reference year for which cost or price is known.

n = the year for which cost or price is to be estimated (n>k).

Cn = the estimated cost or price of item in year n.

Ck = the cost or price of item in reference year k.

Cn = Ck * (In / Ik )

Now,

We find the estimated cost of the new pump which is stated as follows:

Cn = (112,000 * 286) /212

=32032000/212

=$151094

Therefore, the estimated cost of the new pump is $151094

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