Question

Estimate the cost of expanding a planned new clinic by 25,000 ft2. The appropriate capacity exponent is 0.62, and the budget estimate for 185,000 ft2 was $17 million.

Answer 1

To estimate the cost of expanding a planned new clinic by 25,000 ft2, we can use the cost-capacity exponent formula. The estimated cost of expanding the clinic by 25,000 ft2 is approximately $2,854,000.

Step-by-step explanation:

To estimate the cost of expanding a planned new clinic by 25,000 ft2, you can use the cost-capacity exponent formula. The formula is: Cost of Expansion = (Budget Estimate * (New Size0.62 - Current Size0.62)) / Current Size0.62. Given that the budget estimate for 185,000 ft2 was $17 million, we can substitute these values into the formula to find the cost of expanding the clinic by 25,000 ft2.

Cost of Expansion = ($17,000,000 * (210,0000.62 - 185,0000.62)) / 185,0000.62

After calculating the equation, the estimated cost of expanding the clinic by 25,000 ft2 is approximately $2,854,000.

Answer 2

cost of expansion = $1389859.55

Step-by-step explanation:

Given data:

Original size = 185,000 ft^2

New expansion = 25000 ft^2

capacity component = 0.62

total cost for original size of clinic is = $17 million

Size of new clinic = 185,000 + 25,000 = 210,000 ft^2

cost of new clinic
`=  17,000,000 * [(size\ of\ new\ clinic)/(185,000)]^(0.62)`

cost of new clinic =
`17,000,000 * [(210,000)/(185,000)]^(0.62)`

cost of new clinic = $18,389,859.56

cost of expansion = cost of 210,000 ft^2 - cost of 185,000 ft^2

= 18,389,859.56- 17,000,000

cost of expansion = $1389859.55