A 250gallon reactor cost 780000 when it was constructed 20 y

A 250-gallon reactor cost $780,000 when it was constructed 20 years ago. What would a 750-gallon model cost today if the construction cost index for such facilities has increased from 141 to 556 over the last 20 years?

Solution

sol:

$780,000 x 556/141 = $3,075,744 for 250 gallon reactor today

Cost of 250/Cost of 750 = (250/750) ^0.56

1/Cost 750 = .54/Cost of 250

Cost 750 = Cost 250/.54 = $3,075,744/.54 = $ 5.69 million