Using the Unit Method preliminary cost evaluation technique. Find the total cost of constructing 22 Miles of interstate highway with interchanges if we know that on average it costs $7,300,000 to build one mile of this type of interstate.

Using the Unit Method preliminary cost evaluation technique. Find the total cost of constructing 22 Miles of interstate highway with interchanges if we know that on average it costs $7,300,000 to build one mile of this type of interstate.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 9E

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Question

Using the Unit Method preliminary cost evaluation technique. Find the total cost of constructing 22 Miles of interstate highway with interchanges if we know
that on average it costs $7,300,000 to build one mile of this type of interstate.
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Expert Solution

Step 1

Unit Method is a very simple and quick method. Number of units are counted and are then multiplied by cost per unit to get the estimated cost of the total project.

Number of Units x Cost per Unit = Total Estimated Cost of Building Project.

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