American Petroleum (AP) recently completed construction on a large refinery in Texas. The final construction cost was $27,500,000. The refinery covers a total of 340 acres. AP is currently working on plans for a new refinery for Oklahoma. The anticipated size is approximately 260 acres. If the power-sizing exponent for this type of facility is .67, what is the estimated cost of construction?

American Petroleum (AP) recently completed construction on a large refinery in Texas. The final construction cost was $27,500,000. The refinery covers a total of 340 acres. AP is currently working on plans for a new refinery for Oklahoma. The anticipated size is approximately 260 acres. If the power-sizing exponent for this type of facility is .67, what is the estimated cost of construction?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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