A private foundation wants to estimate the construction cost of building a library in Miami, Florida in the year 2008. A similar project that the foundation funded in 1998 in Chicago, Illinois cost $105 per SF. However, the Miami library is expected to be 40% larger than the one in Chicago. Assuming a capacity factor of 0.8, what will the new library cost?

The building will cost $$137.34 per square foot

Explanation:

Let capacity of building funded in Chicago in 1998 be Ca

Cb = Capacity of building library = Ca + 0.4Ca = 1.4Ca

e = Capacity factor = 0.8

($b/$a) = (Cb/Ca)^e = 1(.4Ca/Ca)^0.8 = 1.308

$B = $a * 1.308

$B = $105 * 1.308

$B = $137.34

The building will cost $$137.34 per square foot. Note: Inflation rate is not applied as it was not specified in the question.

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