(Solved): The total cost of a sewage treatment plant with a capacity of 80 million gallons per day completed ...

The total cost of a sewage treatment plant with a capacity of 80 million gallons per day completed in 2020 for a new town in Colorado was \( \$ 16.5 \) million. It was proposed that a similar treatment plant with a capacity of 90 million gallons per day be built in another town in New Jersey for completion in 2024. For additional information given below, make a conceptual estimate of the cost of the proposed plant. - In the total construction cost in Colorado, an item of \( \$ 800,000 \) for site preparation was not typical for similar plants and will not be included in the New Jersey plant. - The effect of the variation of plant capacity on cost for this type of treatment plants can be approximated by and exponential relationship with exponent \( =0.9 \) applied to the daily treatment capacity and should not include any special - The construction inflation rate is expected to be approximately \( 8 \% \) per year from 2020 to 2024. - The locational indices of Colorado and New Jersey areas are \( 1.05 \) and 1.17, respectively, against the national average of - The installation of a special piece of equipment to remove an unusual industrial waste component in the New Jersey sewage will cost an extra \( \$ 350,000 \) in 2024 dollars for the New Jersey plant. - The site conditions in New Jersey will require construction of a new pipeline which will cost \( \$ 500,000 \) in 2024 dollars beyond normal plant construction costs.