PS1-08-solutions

# PS1-08-solutions - CE166 - Fall 2008 Question 1 Anything...

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CE166 - Fall 2008 Problem Set 1 Solutions Page 1 of 2 Professor Arpad Horvath Department of Civil and Environmental Engineering University of California, Berkeley Question 1 Anything reasonable will be accepted as long as it makes sense and is explained well. Question 2 There are a few approaches to solving this problem. The solution here presents a spreadsheet assessment. Floor 65 is economical while Floor 66 is not. This is where the capital construction cost per floor exceeds the expected lifetime revenue from rent. Floor Unuseable Area (m 2 ) Useable Area (m 2 ) Income from Rent (\$/yr) Income from Rent (\$/lifetime) Floor Construction Cost (\$) Should the Owner Add the Floor? 1 100 4,900 264,600 13,230,000 1,000,000 Yes 2 102 4,898 264,492 13,224,600 1,040,000 Yes 3 104 4,896 264,382 13,219,092 1,081,600 Yes 4 106 4,894 264,269 13,213,474 1,124,864 Yes 5 108 4,892 264,155 13,207,743 1,169,859 Yes 6 110 4,890 264,038 13,201,898 1,216,653 Yes 7 113 4,887 263,919 13,195,936 1,265,319 Yes 8 115 4,885 263,797 13,189,855 1,315,932 Yes 9 117 4,883 263,673 13,183,652 1,368,569 Yes 10 120 4,880 263,547 13,177,325 1,423,312 Yes 11 122 4,878 263,417 13,170,872 1,480,244 Yes 12 124 4,876 263,286 13,164,289 1,539,454 Yes 13 127 4,873 263,151 13,157,575 1,601,032 Yes 14 129 4,871 263,015 13,150,726 1,665,074 Yes 15 132 4,868 262,875 13,143,741 1,731,676 Yes 16 135 4,865 262,732 13,136,616 1,800,944 Yes 17 137 4,863 262,587 13,129,348 1,872,981 Yes 18 140 4,860 262,439 13,121,935

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## This note was uploaded on 02/27/2011 for the course CE 166 taught by Professor Horvath during the Spring '08 term at University of California, Berkeley.

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PS1-08-solutions - CE166 - Fall 2008 Question 1 Anything...

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