The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 200,000 gallons per year is $5.7 million. The costcapacity factor for this particular plant technology is 0.61 for capacities ranging from 150,000 gallons per year to 600,000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year? ... The estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year is (Round to the nearest ten thousands.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
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ISBN:9781337514835
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Chapter9: Capital Budgeting And Cash Flow Analysis
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The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 200,000 gallons per year is $5.7
million. The costcapacity factor for this particular plant technology is 0.61 for capacities ranging from 150,000 gallons
per year to 600,000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a
capacity of 550,000 gallons per year?
The estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year is
(Round to the nearest ten thousands)
K
Transcribed Image Text:The capital investment cost for a switchgrass-fueled ethanol plant with a capacity of 200,000 gallons per year is $5.7 million. The costcapacity factor for this particular plant technology is 0.61 for capacities ranging from 150,000 gallons per year to 600,000 gallons per year. What is the estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year? The estimated capital investment for a similar ethanol plant with a capacity of 550,000 gallons per year is (Round to the nearest ten thousands) K
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