A food processing plant with a capacity of 800 tons per day is supposed to be built in city ABC this year. We need to estimate its cost based on the following information:
- A food processing plant with a capacity of 600 tons per day was built in city DEF 7 years ago for $2.33M.
- For the new plant, an extra control system is required that costs $120,000.
- Location indices of cities ABC and DEF are, respectively, 1.29 and 1.18.
- The size factor exponent (power sizing) of these kinds of plants is 0.67 .
- The average annual inflation is 2.5%.