Question: I will give u a thumb up if your answer is correct and clearly! A development company owns 90 acres of land in a growing

I will give u a thumb up if your answer is correct and clearly!
A development company owns 90 acres of land in a growing metropolitan area where it intends to construct office buildings and a shopping center. The developed property is rented for 7 years, after which time it is sold. The sale price for each building is estimated at 10 times its operating net income in the last year of rental. The company estimates that the project will include a 4.5 million square foot shopping center. The master plan calls for constructing three high rise and four garden office buildings. The company is faced with a scheduling problem. If a building is completed too early, it may stay vacant; if it is completed too late, potential tenants may be lost to other projects. The demand for office space over the next 7 years estimate based on appropriate market studies is Year Demand (thousands of square feet) High Rise Garden 200 100 1 2 220 110 3 242 121 4 266 133 5 293 146 6 161 322 354 7 177 The following table lists the proposed capacities of the seven buildings. Garden Capacity (sq ft) High Rise Capacity (sq ft) 1 60,000 1 350,000 2 60,000 2 450,000 3 75,000 3 350,000 4 75,000 The gross rental income is estimated at $18 per square foot. The operating expenses are $3.75 and $4.75 per square foot for garden and high rise buildings, respectively. The associated construction costs are $70 and $105 per square foot, respectively. Both construction cost and rental income are estimated to increase at a rate equal to the inflation rate. How should the company schedule the construction of the seven buildings? Formulate this as an integer programming problem. (No need to solve.)Step by Step Solution
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