ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
The Department of Defense uses area cost factors
(ACFs) to compensate for differences in construction
costs in different parts of the country (and
world). The area cost factor for Waianae,
Hawaii is 2.19 and for Moody, Alabama is 0.83. If
a cold-storage processing warehouse will cost
$1,350,000 in Moody, Alabama, what would be
the monetary difference in cost for a similar warehouse
constructed in Waianae, Hawaii.
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