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A commercial building design cost $91/square-foot to construct eight years ago for an 83.000-square-foot building This construction cost has increased 53% per year srce then.
A commercial building design cost $91/square-foot to construct eight years ago for an 83.000-square-foot building This construction cost has increased 53% per year srce then. Presently, your company is considering construction of a 125,000-square-foot building of the same design. The cost capacity factoris X = 0.92. n addition it s estimated that working capital will be 5% of construction costs, and that project management, engineering services, and overhead will be 42%, 9 and 31% respectively 0 construction costs. Also, it is estimated that annual expenses in the first year of operation will be $6/square foot, and these are estimated to increase 565% per year thereafter. The future general inflation rate is estimated to be 7.69% per year, and the market-based MARR = 12% per year (m). Click the icon to view the interest and annuity table for discrete compounding when ,-12% per year a. What is the estimated capital investment for the 125,000-square-foot building? The estimated capital investment is $ 2483 million. (Round to two decimal places.) b. Based on a before-tax analysis, what is the PW for the first 10 years of ownership of the building? PW= $-30.05 million (Round to two decimal places.) c. What is the AW for the first 10 years of ownership in real dollars (RS)? Assume the base year to be the current year (b-0). AW-million (Round to two decimal places.)
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