A 50-mgpd (million gallons per day) water treatment plant was proposed in 2012 for Ureka, Wa.A 60-mgpd plant using the same treatment process was built in 2006 in Vancouver, Wa. for$50,000,000. Given the following additional information and assumptions:
- Poor site condition in Vancouver required an additional $3,000,000 for foundations, which is notanticipated for Ureka.
- Assume the size exponent m = 0.67.
- Assume inflation will persist at an average 4% per annum.
- Assume the location index for Vancouver is 1.17 and 1.24 for Ureka.
- A new high-pressure filter process will be added at Ureka at an additional cost of $4,000,000.
- The construction period for the new plant will include winter construction. The Vancouver plantwas not constructed through a winter season. Assume an increase in construction costs for Urekaof 12%