An industrial engineer, who was formerly a real estate developer, wants to estimate the construction costs of an apartment complex that he recently acquired. He gathered the following information:

If the total construction cost of the similar property was $2.5 million in the reference year, what is his estimated construction cost in the current year?

Please show work! Thanks!

Cost Element Percent Index Index Reference Ye Current Year S/ft2 46 75 150 175 170 100 S/ft 69 107 192 202 198 120 Studio units One bedroom units Two bedroom units 30 23 21 4 bedroom units Four bedroom units Central facilities and landscapin