P Do Homework Donald Oakes Google Chrome https:// 1&flushed true&cld 3931236&cer IE 345 Engineering Economic Analysis Summer 2016 Donald Oakes 6/29/16 7 PM Homework: HW5 Save HW Score: 82.6 82.6 of 100 pts Score: 8 of 12 pts 1 of 8 (6 complete) Problem 8-14 (algorithmic) Question Help A commercial building design cost $90/square-foot to construct eight years ago (for an 83,000-square-foot building). This construction cost has increased 5.5% per year since then. Presently, your company is considering construction of a 125,000-square-foot building of the same design. The cost capacity factor is X 0.91. In addition, it is estimated that working capital will be 6% of construction costs, and that project management, engineering services, and overhead will be 4.3%, 8%, and 31%, respectively, of construction costs. Also, it is estimated that annual expenses in the first year of operation will be $6square foot, and these are estimated to increase 5.66% per year thereafter The future general inflation rate is estimated to be 8.69% per year, and the market-based MARR 12% per year (im) Click the icon to view the interest and annuity table for discrete compounding when i 12% per year a. What is the estimated capital investment for the 30,000-square-foot building? The estimated capital investment is million. (Round to two decimal places.) b. Based on a before-tax analysis, what is the P for the first 10 years of ownership of the building? million (Round to two decimal places.) PWE ct. What is the AW for the first 10 years of ownership in real dollars (R$)? Assume the base year to be the current year (b 0 llion (Round to two decimal places.) P Do Homework Donald Oakes Google Chrome https:// 1&flushed true&cld 3931236&cer IE 345 Engineering Economic Analysis Summer 2016 Donald Oakes 6/29/16 7 PM Homework: HW5 Save HW Score: 82.6 82.6 of 100 pts Score: 8 of 12 pts 1 of 8 (6 complete) Problem 8-14 (algorithmic) Question Help A commercial building design cost $90/square-foot to construct eight years ago (for an 83,000-square-foot building). This construction cost has increased 5.5% per year since then. Presently, your company is considering construction of a 125,000-square-foot building of the same design. The cost capacity factor is X 0.91. In addition, it is estimated that working capital will be 6% of construction costs, and that project management, engineering services, and overhead will be 4.3%, 8%, and 31%, respectively, of construction costs. Also, it is estimated that annual expenses in the first year of operation will be $6square foot, and these are estimated to increase 5.66% per year thereafter The future general inflation rate is estimated to be 8.69% per year, and the market-based MARR 12% per year (im) Click the icon to view the interest and annuity table for discrete compounding when i 12% per year a. What is the estimated capital investment for the 30,000-square-foot building? The estimated capital investment is million. (Round to two decimal places.) b. Based on a before-tax analysis, what is the P for the first 10 years of ownership of the building? million (Round to two decimal places.) PWE ct. What is the AW for the first 10 years of ownership in real dollars (R$)? Assume the base year to be the current year (b 0 llion (Round to two decimal places.)