You've been asked to replace a 5HP rotary air compressor (with a typical power-sizing exponent of 0.32), purchased in 2000 at a cost of $7500, with a 25HP compressor. The cost index for the compressor in 2000 was 141.2, and is now, according to the Bureau of Labor Statistics, 247.8. How much do you estimate this will cost?
Cost will be adjusted for inflation hence the new cost will be 7500*247.8/141.2=$13162.2
You've been asked to replace a 5HP rotary air compressor (with a typical power-sizing exponent of...