1) What is the total cost of the building in 2016 (Use cost indices factor method)?
For building,
C=$3,980,000
CI (2002) = 3624
CI (2016) = 4571
C1 = $3,980,000*(4571/3624)
= $5,020,028
Question 1
It is the beginning of 2008. Assume that you have an estimate on file for a 100,000 square feet building that was completed in June 2002 for a total cost of $3,980,000. In August 2004, a storage facility was added for a cost of $320,000.
Today, the client is interested in building a similar building and the same storage facility in the same area. You are asked to perform a feasibility study for the construction of these two structures in March 2016.
The new building is going to have an area of 120,000 square feet. The cost capacity factor for this type of construction is 0.92. The targeted site is free – no existing structures have to be removed.
The Building Cost Index of 2002 is 3624; for 2004 it is 4027; and for 2016 it is 4571.
Use the above information to answer the questions in this quiz.
1) What is the total cost of the building in 2016 (Use cost indices factor method)?
For building,
C=$3,980,000
CI (2002) = 3624
CI (2016) = 4571
C1 = $3,980,000*(4571/3624)
= $5,020,028
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