Discussion
A plant of \( 10 \) t/h capacity cost \( 25 \) million. Using the six-tenths rule, a \( 20 \) t/h plant would cost about
Answer: A
Correct answer: 37.9 million
\[ C_2 = 25 \times \left(\frac{20}{10}\right)^{0.6} = 25 \times 2^{0.6} = 25 \times 1.516 = 37.9\ \text{million} \]Doubling the capacity costs about 52 per cent more, not twice as much - which is the whole argument for building large.
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