A large university in the eastern suburbs has an eleven story humanities building but a severe shortage of undercover car parking. Undercover parking is required to satisfy occupational health and safety concerns with future climate change. The university has a 11,349 square meter site currently used for car parking which is to be redeveloped. Each car space takes 20 square metres which includes an allowance for paths and access. Building cost is $150 per square metre per floor. The university receives $400 per car parking space per annum. A one-storey car park would take 0.5 years to construct. A two-storey car park would take one year to construct. Three floors would take 1.2 years. Assume that the $400 revenue applies pro rata over the period. Construction should begin immediately and the new facility should last for ten years. Assume a discount rate for expenses of 4%. Assume that revenues will inflate at 3% per year. Your task is to advise the facilities manager about what to do. The manager also wants to know if and when breakeven would occur. It is likely that the $400 per car fee will change. It has also been suggested that the university should allow more than 20 square metres per car because two environmental science and sustainability students drive Humvees.
1. Provide a brief specification for your model which includes; an introduction, assumptions, aims, limitations, concept diagram, rules table, and user manual (around three pages).
2. Provide a brief report in executive summary format highlighting your specific results and recommendations (around one page).