You have been asked to estimate the costs for a project to build an industrial power plant.Based on historical data,the steam turbine accounts for 30 percent of the total costs for the plant.If the steam turbine costs $300,000,the expected top-down estimated cost for this project would be __________.
A)$1,000,000
B)$100,000
C)$10,000
D)$900,000

Question

Quizplus · Accepted Answer

The steam turbine cost is 30% of the total project cost. If the turbine costs $300,000, then the total project cost is $300,000 / 0.30 = $1,000,000.

You Have Been Asked to Estimate the Costs for a Project