The community of upper snowshoe has expanded its winter, Business Economics

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The community of upper snowshoe has expanded its winter

The community of Upper Snowshoe has expanded its winter tourism very rapidly. Three years ago, it built a new 16,000 kW power plant for $4,500,000. The local construction cost index was 157 at that time and has risen to 170 now. What is the estimated cost of a 20,000 kW power plant now? Assume a cost capacity factor of .88.

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