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I need your help solving this problem. Pls help me by answering and showing explanations. Question 1: How much would you estimate a ISO-room hotel
I need your help solving this problem. Pls help me by answering and showing explanations.
Question 1: How much would you estimate a ISO-room hotel would have cost if built in January 2015, if your company built a ISO-room hotel in 2010 for $15,000,000? (Use: (1' ) HistoricalCostIndices, which also has a description on how to properly apply them.) Historical Cost Indexes The table below lists both the RSMeans historical cost index based on the Engineering News-Record. To compute the actual index based on Jan. 1, Jan. 1, 1993 = 100 as well as the computed value of an index based on 2015 = 100, divide the historical cost index for a particular year by the actual Jan. 1, 2015 costs. Since the Jan. 1, 2015 figure is estimated, space is left Jan. 1, 2015 construction cost index. Space has been left to advance to write in the actual index figures as they become available through the index figures as the year progresses. either the quarterly RSMeans Construction Cost Indexes or as printed in Historical Current Index Historical Current Index Historical Current Index Cost Index Based on Cost Index Based on Cost Index Based or Year Jan. 1, 1993 = 100 Jan. 1, 2015 = 100 Year Jan. 1, 1993 = 100 Jan. 1, 2015 = 100 Year Jan. 1, 1993 = 100 Jan. 1, 2015 = 100 Est. Actual Est. Actual Actual Est. Actual Actual Est. Actual Oct 2015* July 2000 120.9 68.5 July 1982 76.1 36.8 July 2015* 1999 117.6 56.9 1981 70.0 33.9 April 2015* 1998 115.1 55.7 1980 62.9 30.4 Jan 2015* 206.7 100.0 100.0 1997 112.8 54.6 1979 57.8 28.0 July 2014 204.9 99.1 1996 110.2 53.3 1978 53.5 25.9 2013 201.2 97.3 1995 107.6 52.1 1977 49.5 23.9 2012 194.6 94.1 1994 104.4 50.5 1976 16.9 22.7 2011 191.2 92.5 1993 101.7 49.2 1975 44.8 21.7 2010 183.5 88.8 1992 99.4 18.1 1974 41.4 20.0 2009 180.1 87.1 1991 96.8 46.8 1973 37.7 18.2 2008 180.4 87.3 1990 94.3 45.6 1972 34.8 16.8 2007 169.4 82.0 1989 92.1 44.6 1971 32.1 15.5 2006 162.0 78.4 1988 89.9 43.5 1970 28.7 13.9 2005 151.6 73.3 1987 87.7 42.4 1969 26.9 13.0 2004 143.7 69.5 1986 84.2 40.7 1968 24.9 12.0 2003 132.0 63.9 1985 82.6 40.0 1967 23.5 11.4 2002 128.7 2.3 1984 32.0 39.7 1966 22.7 11.0 2001 125.1 60.5 1983 30.2 38.8 1965 21.7 10.5 Adjustments to Costs The "Historical Cost Index" can be used to convert national average building Time Adjustment Using the Historical Cost Indexes: costs at a particular time to the approximate building costs for some other time. Index for Year A - X Cost in Year B = Cost in Year A Index for Year B Example: Estimate and compare construction costs for different years in the same city. INDEX 1970 To estimate the national average construction cost of a building in 1970, x Cost 2015 = Cost 1970 INDEX 2015 knowing that it cost $900,000 in 2015: INDEX in 1970 = 28.7 28.7 * $900,000 = .139 x $900,000 = $125,100 INDEX in 2015 = 206.7 206.7 The construction cost of the building in 1970 is $125,100. Note: The city cost indexes for Canada can be used to convert U.S. national averages to local costs in Canadian dollars.Example: Estimate and compare construction costs for different years in the same city. INDEX 1970 To estimate the national average construction cost of a building in 1970, x Cost 2015 = Cost 1970 knowing that it cost $900,000 in 2015: INDEX 2015 INDEX in 1970 = 28.7 28.7 x $900,000 = .139 x $900,000 = $125,100 INDEX in 2015 = 206.7 206.7 The construction cost of the building in 1970 is $125,100 Note: The city cost indexes for Canada can be used to convert U.S. national averages to local costs in Canadian dollars. Example: To estimate and compare the cost of a building in Toronto, ON in 2015 with the known cost of $600,000 (US$) in New York, NY in 2015: INDEX Toronto = 110.9 INDEX New York = 131.8 INDEX Toronto x Cost New York = Cost Toronto INDEX New York 110.9 X $600,000 = .841 x $600,000 = $504,600 131.8 The construction cost of the building in Toronto is $504,600 (CN$). "Historical Cost Index updates and other resources are provided on the following website. http://info.thegordiangroup.com/RSMeans.htmlStep by Step Solution
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