A finishing machine was bought for your textile plant at a price of $450,000 in the year2014. The reference size of the machine was 120 yd/min. The plant is planning

to buy a similar machine in the year 2020 having a size of 420 yd/min. Assume that the cost-capacity factor is 0.X. Estimate the cost of the machine if the index for this type of machines has had a compound increase of 5% per year.