Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
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Chapter 3, Problem 9P

Prepare a composite (weighted) index for housing construction costs in 2014, using the following data: (3.3)

Chapter 3, Problem 9P, Prepare a composite (weighted) index for housing construction costs in 2014, using the following

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Compute to three decimal places. (See attached) Initial values are:      PX = $9500     PY = $10000   I = $15000      A = $170000   W = 160 This function is:        Qs = 89830 -40PS +20PX +15PY +2I +.001A +10W
Every year, there is some form of construction work going on at UF's campus. In January 2018, bids were opened for a new building on campus for UFPD. The bid/construction value of the building was set at $5 Million. Another building of similar structure and purpose is planned with a bid opening in January 2023. What is the expected bid for the new building? It is given that in January 2000, the Florida Construction Cost Index had a value of 5550, while in January 2018, that value was 8000. You can use these price indices to calculate an average inflation in construction costs.
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