Basics of Engineering Economy 2nd Edition by Anthony Tarquin,Leland Blank

Exercise 7

The Department of Defense uses area cost factors (ACFs) compensate for differences in construction costs in different parts of the country and world. The ACF for Andros Island in the Bahamas is 1.70 while the ACF for Rapid City, South Dakota, is 0.93. If a cold storage processing warehouse costs $1,350,000 in Rapid City, what is the estimated cost of the same facility on Andros Island