Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build). Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high- rise buildings are more expensive). The following are the cost estimates for one region in the Northeast: Design costs Building costs - per square foot (low-rise) Building costs per square foot (high-rise) Downtown premium Teaching hospital premium. Design costs Building costs Downtown premium Teaching hospital premium Estimated cost Required: A rural county government has requested an estimate to build a 208,000-square-foot hospital in a small city (though the largest in the county). It will be a single-story building and not affiliated with any teaching institution. Based on the engineering estimates above, what will such a hospital cost to build? Note: Enter your answers in thousands. Amounts in thousands $ 15,008,000 380 440 $ 15,808,000 79,040,000 228 15,808,000 $ 110,656,228 60% 20%
Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build). Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high- rise buildings are more expensive). The following are the cost estimates for one region in the Northeast: Design costs Building costs - per square foot (low-rise) Building costs per square foot (high-rise) Downtown premium Teaching hospital premium. Design costs Building costs Downtown premium Teaching hospital premium Estimated cost Required: A rural county government has requested an estimate to build a 208,000-square-foot hospital in a small city (though the largest in the county). It will be a single-story building and not affiliated with any teaching institution. Based on the engineering estimates above, what will such a hospital cost to build? Note: Enter your answers in thousands. Amounts in thousands $ 15,008,000 380 440 $ 15,808,000 79,040,000 228 15,808,000 $ 110,656,228 60% 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ferdinand Construction (FC) manages the design and construction of hospitals. Ferdinand has developed several formulas that it uses
to quote jobs. These include costs of basic construction but exclude equipment and furniture. These estimates are also dependent on
the purpose of the hospital (teaching hospitals are more costly to build) and location (downtown hospitals are more costly to build).
Both of these are based on the building costs. The estimated costs also depend on whether the hospital has few or many stories (high-
rise buildings are more expensive). The following are the cost estimates for one region in the Northeast:
Design costs
Building costs - per square foot (low-rise)
Building costs - per square foot (high-rise)
Downtown premium
Teaching hospital premium
Design costs
Building costs
Downtown premium
Teaching hospital premium
Estimated cost
Required:
A rural county government has requested an estimate to build a 208,000-square-foot hospital in a small city (though the largest in the
county). It will be a single-story building and not affiliated with any teaching institution. Based on the engineering estimates above,
what will such a hospital cost to build?
Note: Enter your answers in thousands.
Amounts in
thousands
$ 15,808,000
79,040,000
228
$ 15,008,000
380
440
15,808,000
$ 110,656,228
60%
20%
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