Problem

A construction company is bidding for a project comprising five highrise buildings, to be...

A construction company is bidding for a project comprising five highrise buildings, to be erected one after the other. The company considers the use of advanced, hydraulically operated tunnel forming systems to be purchased and used 60 times on each building over one year period of time. The tunnel forms cost $28 per sf. No salvage value is expected at the end of the five-year project. As the two last buildings to be constructed slightly differ in their design, the forms will have to be modified at the cost of $5 per sf.  Periodical maintenance is expected every 120 uses at the cost of 5% of the purchase cost.  Consider annual interest rate of 4%.  What is the expected average material cost per sf for each use?

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Solutions For Problems in Chapter 21