Question

A new aerated sewage lagoon is required in a small town. Earlier this year, one was built on a similar site in an adjacent city for $2.3 million. The new lagoon will be 65% larger. The power sizing exponent for this project is 1.13. What is a good estimate for the cost of the new, larger lagoon?

Answer 1

Answer:

value of new lagoon will be $4.05 million

Explanation:

We have given cost = $2.3 million

It is given that new lagoon will be 65% larger

So size of lagoon will be 1+0.65 =1.65

Sizing exponent for this project is given 1.13

So x = 1.13

New lagoon is given by $New\ lagoon=cost\times size^x$

So new lagoon will be equal to $=2.3\times 1.65^{1.13}=2.3\times 1.76=4.05$ $ million

So value of new lagoon will be $4.05 million