Question

Queston 12 Not yet answered Points out of 3.75 (NOTE: ENTER YOUR ANSWER WITHOUT THE $. in millions of dollars, ROUNDED TO TWO DECIMAL PLACES, for instance as 5.63, not as $5,634,000.) A company just built a training facility for its Ohio workforce, with the size of 70316 square feet, for $7.7 million. It also wants to build a similar training facility in Illinois, with the size of 80646 square feet. Using 0.16 as the cost-capacity exponent, determine the projected cost of the Illinois training center. P Flag question Answer: Question 13 Not yet answered Points out of 3.75 (NOTE: ENTER YOUR ANSWER WITHOUT THE $ AND COMMA, ROUNDED TO THE NEAREST DOLLAR, for instance as 105023, not as $105,022.78.) Holiday Out Properties borrowed $1.9 million in order to finance construction of a new hotel in Orlando, Florida. If the interest rate on the loan is 7%, and the loan will be completely paid-off in 12 years in equal annual payments, what will be the amount of the annual payment? P Flag question

Answer 1

The cost of a similar size or capacity can be calculated from the equation

ਘ) '2 = ੭

(80646 0.16 C2 = 7.7 x 7x170316)

The project cost of the Illinois training center = 7.87

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The annual payment is found using the following equation

Present value of the loan PMT = 1- (1 + interets rate) interest rate

1900000 Annual payment = 1-(1 +0.07)-12 0.07

Amount of the annual payment = 239214