Engineering Economy

Question It is desired to make a preliminary estimate of the cost of building a 1200-MW fossil-fuel plant. It is known that a 700-MW plant cost $100 million twenty (20) years ago when the approximate cost index was 300 and that the cost index is now 1800. The cost capacity factor for a fossil-fuel power plant is 0.81. Estimate the cost in millions of dollars of building the larger power plant today. (Enter your answer as a number that represents millions of dollars without the dollar sign.)

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