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COST ESTIMATION Cost Indexes Present Cost=(original cost at time t)* • Marshall and Swift. 1. All industry-equipment index. Arithmetic average of 47 equipment types. 2. Process-industry equipment index. Weighted average of 8 of these: cement 2% paint 5% chemicals 48% paper 10% clay products 2% petroleum 22% glass 3% rubber 8% M&S was 100 in 1926.

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published by the Marshall & Swift/Boeckh, LLC, Marshall Valuation Service. Application of the index factors to a property's historical cost typically results in reproduction cost new. In situations where equipment has undergone minimal changes in technology, reproduction cost and replacement cost are likely to be similar.

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