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Unformatted text preview: plant described in Problem 1? Assume a 2.5% delivery charge. Explain the difference in your answers between the Hand and Lang solutions. Pagel Problem 3 Using the Factor estimating approach determine the cost of a new building where the major equipment cost is $900,000 , , '.'&quot;~'iffif8i'i'-~ Excavation _ l~~~~~'. . . Problem 4 =--=---------Bear Oil iocated in Houston, TX built a plant capable of producing 200kBjday of Jet Fuel in 1993 (July) for $22,000,000, Another company built a similar plant capable of producing 150kBjday for $17,000,000 (July 1993) in Houston. Bear Archery is interested in building a plant capable of producing 400kBjday near Great Falls, Montana. Assume a cost basis of 3Q12 and a 4% annual inflation rate. Use the Scale of Operations method. Page 2 Prepare a unit price estimate for the West Town Apartments at January 1, 2010. Use city data for Des Moines, Iowa. Page 3...
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This note was uploaded on 10/12/2011 for the course CON E 421 taught by Professor Jaselskis during the Fall '10 term at Iowa State.
- Fall '10