Cost Estimating Approaches - 3

Parametric: basic equation

• $2=$1(C2/C1)n

  • Where

    $1 = Estimated cost of new element
    
    $2 = Known cost of known element
    C1 = Capacity of new element
    C2 = Capacity of known element
    n = cost-capacity factor for type of element

  • Capacity factors range from 0.5 to 0.9

    • Actual value determined from statistical records

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