PROJECT COST AND FINANCE MANAGEMENT

PLEASE ANSWER CORRECTLY!

Your company have been approached by a logistics company to provide a quick feasibility estimate of a new warehouse along the R21 near OR Tambo Airport.

A recently newly (Jan2021) completed warehouse in the same vicinity with an area of 3500m2 and 4.8m high walls was built for R92m. The new facility has an area of 4500m2 with walls of 5.9m high. The cost index for South Africa in Jan 2021 was 150 and now 157 in Jun 2022.

Question 4 c [2]

It now so happens that a similar new facility must be built in Windhoek, Namibia. Assume all physical assumptions are the same for both projects except that the civil works in Namibia is 20% more expensive than in RSA. What will be the cost for a similar warehouse as civils are usually 20% of the total project cost?

PLEASE ANSWER CORRECTLY AND IN DETAIL!