2. The total construction cost of a Ford car factory with a production capacity of 4000...

 

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2. The total construction cost of a Ford car factory with a production capacity of 4000 cars/day in Detroit, MI, completed in year 2010 was $900 million. A proposed similar factory with a production capacity of 3500 cars/day is to be built in Tallahassee, FL, for completion in 2020. Moreover, the following data was obtained. Develop a parametric estimate for the total cost of the Tallahassee factory. For the Detroit factory, there was a work item of $8 million for site preparation, which is not typical for other similar factories. • Special hurricane resistance work items will be done for the Tallahassee factory and they cost $12.5 million. ● ● ● . The cost capacity factor for these type of buildings x = 0.6 The inflation rate for the period from 2010 to 2020 is 2.5% per year. The location construction index was 1.4 for Detroit and 1.2 for Tallahassee in 2020. New air pollution equipment for the Tallahassee factory will cost $12.2 million in 2020 (that equipment was not required for Detroit). An increased contingency cost of 3% of total construction cost is expected for the Tallahassee factory due to expected rain delays. The new factory in Tallahassee will seek LEAD certification as a green building. The total predicted cost for the certification is 8% of the total cost. No green certification was required for the Detroit factory. 2. The total construction cost of a Ford car factory with a production capacity of 4000 cars/day in Detroit, MI, completed in year 2010 was $900 million. A proposed similar factory with a production capacity of 3500 cars/day is to be built in Tallahassee, FL, for completion in 2020. Moreover, the following data was obtained. Develop a parametric estimate for the total cost of the Tallahassee factory. For the Detroit factory, there was a work item of $8 million for site preparation, which is not typical for other similar factories. • Special hurricane resistance work items will be done for the Tallahassee factory and they cost $12.5 million. ● ● ● . The cost capacity factor for these type of buildings x = 0.6 The inflation rate for the period from 2010 to 2020 is 2.5% per year. The location construction index was 1.4 for Detroit and 1.2 for Tallahassee in 2020. New air pollution equipment for the Tallahassee factory will cost $12.2 million in 2020 (that equipment was not required for Detroit). An increased contingency cost of 3% of total construction cost is expected for the Tallahassee factory due to expected rain delays. The new factory in Tallahassee will seek LEAD certification as a green building. The total predicted cost for the certification is 8% of the total cost. No green certification was required for the Detroit factory.

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ANS WER The total cost of the Tall ah as see factor... View the full answer