The relevant cost index was 120 4 years ago the cost then


The relevant cost index was 120 4 years ago. The cost then for a gas station tank of 1,500 gallons was $40,000. We want to now purchase one size 4,500 gallons but the purchased price cost index is now 300. Assuming a power law size model with exponent 0.75 to account for the size difference, Calculate an estimate of the new tank cost today.

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Business Economics: The relevant cost index was 120 4 years ago the cost then
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