90.2K

Verified Solution

Link Copied!

Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build). Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high-rise buildings are more expensive). The following are the cost estimates for one region in the Northeast:

Design costs	$ 15,005,000
Building costs per square foot (low-rise)	350
Building costs per square foot (high-rise)	410
Downtown premium	60%
Teaching hospital premium	20%

Required:

A rural county government has requested an estimate to build a 205,000-square-foot hospital in a small city (though the largest in the county). It will be a single-story building and not affiliated with any teaching institution. Based on the engineering estimates above, what will such a hospital cost to build?

Note: Enter your answers in thousands.

\begin{tabular}{|l|c|} \hline & Amounts in thousands \\ \hline Design costs & \\ \hline Building costs & \\ \hline Downtown premium & \\ \hline Teaching hospital premium & \\ \hline Estimated cost & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer