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A cost index is a ratio of the cost of something now to its cost at some time in the past

A cost index is a ratio of the cost of something now to its cost at some time in the past. Example: The construction cost of a certain highway ramp was $380,000 in 1990. The ENR. construction cost index had a value of 4770.03 at that time. If a similar project is to be.

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A cost index is a ratio of the cost of something now to its cost at some time in the past

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  1. A cost index is a ratio of the cost of something now to its cost at some time in the past Example: The construction cost of a certain highway ramp was $380,000 in 1990. The ENR construction cost index had a value of 4770.03 at that time. If a similar project is to be constructed at a time when the index value is 7059.63, what would the estimated cost be? Cost indexes General equation is: Ct = C0(It/Io) Solution: Ct = 380,000 (7059.63 / 4770.03) = $562,400

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