A definitive estimate for the cost of a 20000-ton year


A definitive estimate for the cost of a 20,000-ton/ year oxygen plant is $15M.

(a) Provide an order-of-magnitude estimate for a 30,000-ton/year facility.

(b) Assume that the AACE error limits apply to both estimates. Provide upper and lower estimates for the cost of the 30,000-ton/year facility.

(c) Assume the 20,000-ton/year facility was designed for Los Angeles and the 30,000-ton/year facility is for Anchorage. Adjust your estimate accordingly.

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Business Economics: A definitive estimate for the cost of a 20000-ton year
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