In January of 2015, the appropriate construction cost index had a value of $3,260. In January of 2005, the value was $1,746. In January 2010 you received a bid for a structure of 7.25 million. Another building (virtually identical) is planned for a bid opening in January 2020. Estimate the new building bid.

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Business

Luciana Mccormick

7 December, 03:51

In January of 2015, the appropriate construction cost index had a value of $3,260. In January of 2005, the value was $1,746. In January 2010 you received a bid for a structure of 7.25 million. Another building (virtually identical) is planned for a bid opening in January 2020. Estimate the new building bid.

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Augustus Hull · Answer 1

11.63 million dollar

Explanation:

In 2005 the construction cost index was 1746, in 2015, it was 3260.

change in index in 10 years = 3260-1746 = 1514

change in 5 years (estimated) = 757

Estimated index in 2010 = 1746 + 757

= 2503

Estimated index in 2020 = 3260 + 757

= 4017

Value of building in 2010 = 1746 million dollar

Value of similar building - X

X / 1746 = index in 2020 (probable) / index in 2010

X / 7.25 = 4017 / 2503

X = 11.63 million dollar