A study has been made of the most economical height of skyscrapers. This study grew out of the experience related to the Empire State Bldg, whose height was uneconomical at the time it was constructed. Data are summarized below for a theoretical office building of different heights and corresponding investments. The heights of the building were considered to be 8, 15, 22, 30, 37, 50, 63, and 75 stories. If the owners of this building expect at least 16% per year return on their capital investment, how many stories should be constructed? Why? 8. Height increment (stories) Return from investment required for each increment of height (%) First 8 stories 4 8 – 15 23.5 15 – 22 21.5 22 – 30 16 30 – 37 16 37 – 50 18.5 50 – 63 14.5 63 - 75 8.5

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A study has been made of the most economical height of skyscrapers. This study grew out of
the experience related to the Empire State Bldg, whose height was uneconomical at the time it
was constructed. Data are summarized below for a theoretical office building of different
heights and corresponding investments. The heights of the building were considered to be 8,
15, 22, 30, 37, 50, 63, and 75 stories. If the owners of this building expect at least 16% per
year return on their capital investment, how many stories should be constructed? Why?
8.
Height increment (stories)
Return from investment required for each
increment of height (%)
First 8 stories
4
8 – 15
23.5
15 – 22
21.5
22 – 30
16
30 – 37
16
37 – 50
18.5
50 – 63
14.5
63 - 75
8.5
Transcribed Image Text:A study has been made of the most economical height of skyscrapers. This study grew out of the experience related to the Empire State Bldg, whose height was uneconomical at the time it was constructed. Data are summarized below for a theoretical office building of different heights and corresponding investments. The heights of the building were considered to be 8, 15, 22, 30, 37, 50, 63, and 75 stories. If the owners of this building expect at least 16% per year return on their capital investment, how many stories should be constructed? Why? 8. Height increment (stories) Return from investment required for each increment of height (%) First 8 stories 4 8 – 15 23.5 15 – 22 21.5 22 – 30 16 30 – 37 16 37 – 50 18.5 50 – 63 14.5 63 - 75 8.5
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