GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN MILLIONS OF DOLLARS ROUNDED TO TWO DECIMAL PLACES, for instance if you compute $51,342,245,7345 then ENTER 51.34 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off.
The cost of an electric arc furnace with an EFA capacity of 30 tons was $92 million when the applicable equipment cost index had a value of 781. The current index value is 966 and the exponent in the cost-capacity equation has a value of 0.64. What is the estimated cost now of a similar system with an EFA capacity of 40 tons? Answer: