Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 51

The Department of Defense uses area cost factors (ACFs) to adjust for differences in construction costs in different parts of the country (and world). The area cost factor for Andros Island in the Bahamas is 1.70 while the ACF for Rapid City, South Dakota, is 0.93. If a cold storage processing warehouse costs $1,350,000 in Rapid City, estimate the cost for Andros Island.