1. Prepare a cost estimate for the construction of a small, high-quality office building that contains 1,800 m2 of floor area. Use the following historical data of the construction cost of similar projects.

[Lowest value: 62$/m2, Median value: 78$/m2, Highest value: 101$/m2]

What range of percentage of this cost would you recommend to define the level of accuracy in the schematic design? Note: Assume the cost of design for the project is 7% of construction and a site work cost of $180,000.

2. During the feasibility study of a project, the initial estimated cost for design and construction is $3.7 M. It is anticipated that the cost to maintain and operate the facility after completion of construction will be $250,000 per year. Assuming the owner must obtain a return on the initial investment of 15%., what net annual income must be received to economically justify the project? Assume no salvage value after using the facility for 12 years.

3. The cost estimate of a project is $3.5M. Annual costs for maintaining and operating the facility are forecast as $250,000 per year. After 8 yearas, it is anticipated the facility will be sold for $2M. If the owner requires a 15% return on investment, what net annual income must be received to recover the capital inivestment of the project?

4. The initial investment for a project is $4.7M. A net annual profit of $1.5M is anticipated. Using a 12% desired rate of return on the investment, what is the payback period for the project?