Price the project using the rom approach

Assignment Help Financial Management

Reference no: EM131837412

The city of Tucson is experiencing rapid growth and must build a new High School. Projected student population for this school is 900 students.

A) Price the project using the ROM approach (use cost per pupil). Adjust for size and location. Include designer fee - assume median quality.

B) Assume a 125,000 square foot school building, price the project using a reported square foot data. Make the same adjustments as in part A and again assume median quality.

C) Compare and contrast the above estimating approaches. Provide some reasons why the estimates might vary.

Reference no: EM131837412

Questions Cloud

Should you undertake the investment opportunity : What is the NPV of the investment opportunity? Should you undertake the investment opportunity?

What was charge for depreciation and amortization : It had $2.0 million of interest expense, and its corporate tax rate was 35%. What was its charge for depreciation and amortization?

Cost of refinancing their house : If the cost of refinancing their house is ?$6,070 how long would Doug and Lynn have to remain in their home in order to recover the? cost,

Calculating loan payments : What will your monthly payments be? What is the effective annual rate on this loan?

Price the project using the rom approach : Price the project using the ROM approach (use cost per pupil). Adjust for size and location. Include designer fee - assume median quality.

What is the expected return on portfolio : What is the expected return on a portfolio that is equally invested in the two assets?

What are expected corporate tax savings from debt for year : Wolverine Manufacturing is an all equity firm that had a loss of $1 million this year. what are the expected corporate tax savings from the debt for next year?

Risky asset with expected return : Suppose you own a risky asset with an expected return of 12.6 percent and a standard deviation of 18.2 percent.

Compute inventory : Compute Inventory.

User Account

All Pages