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Business, 10.09.2019 23:30 jason9394

Apackage delivery company is contemplating building a new shipping center. the most recent shipping center, 10,000 square feet large, was built in 2005, at a cost of $500,000. the new shipping center will be 15,000 square feet large. using the power-sizing cost-estimating model, estimate the cost of building a new shipping center now, using the assumptions below to construct a weighted cost index value for 2005 and for today. use 0.90 for the cost-capacity factor. the dollar cost of building a shipping center can be broken down into the cost of labor (20%), materials (35%), and equipment (45%). the cost index for labor is 120 in 2005, and 150 today. the cost index for materials is 180 in 2005 and 170 today. the cost index for equipment is 140 in 2005 and 200 today.

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