1. Prof Awad S. Hanna Project : Student Residence  New Project  Desired Capacity = 750,000 sq. ft  Expected Completion = End of 1998  Location = St. Louis, Missouri Similar Project Capacity = 360,000 sq. ft Completion Date = Jan 1, 1993 Location = New York, NY Cost = 23,000,000

2. Prof Awad S. Hanna Information  Cost Index New York Jan 1993 = 2603  Cost Index New York Jan 1997 = 3076  Cost Index St. Louis Jan 1997 = 2390 What is the expected cost in St. Louis?

3. Prof Awad S. Hanna Solution  Unit Cost (New York) UP 1 = = = $63.89/sq. ft. 1. Time Adjustment New York  Ratio = = 1.18 Assuming escalation rate at 3% / year Project unit cost at the end of 1998 = 63.89 (1+0.03) 2 x 1.18 = $79.98 Cost Area 23,000,000 360,000 3076 2603

4. Prof Awad S. Hanna Solution (cont.) 2. Location Latest CI for NY = 3076 Latest CI for St. Louis = 2390 Ratio = = 0.78 Base Unit Cost (St. Louis) = 79.98 x 0.78 = 62.38 2390 3076

5. Prof Awad S. Hanna Solution (cont.) 3. Size UP 2 = UP 1 ( ) x-1 = 62.38 ( ) 0.6 -1 = 62.38 x 1.16 = 72.36 Q2Q1Q2Q1 250,000 360,000