Business modelling Methods (econometrics)

timer Asked: Apr 15th, 2016

Question description

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). 

Tutor Answer

(Top Tutor) Studypool Tutor
School: Rice University
Studypool has helped 1,244,100 students
flag Report DMCA
Similar Questions
Hot Questions
Related Tags

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors