Question 3.D: A microbrewery was built in 2014 at a total cost of $650,000...

Engineering Economy [EXP-20136]

A microbrewery was built in 2014 at a total cost of $650,000. Additional information is given in the accompanying table (all year 2000 indices = 100). (3.3)

Cost Element	Average Percentage of Total Brewery Cost	Index (2016)	Index (2020)
Labor	30	160	200
Materials	20	145	175
Equipment	50	135	162

a. Calculate a weighted index for microbrewery construction in 2020.
b. Prepare a budget estimate for a microbrewery in 2020.

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