Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 38

In 2008, a military engineer estimated the cost for a classified laser-guided device to be $376,900. The engineer used the M S equipment index for the years 1998 and 2008 and the cost-capacity equation with an exponent value of 0.61. If the original equipment had only one-fourth the capacity of the new equipment, what was the cost of the original equipment in 1998