Estimating Cost for a New Warehouse Along R21 Near OR Tambo Airport

Question 4 a [2]

What would the proposed estimate and cost ranges for the newly warehouse 2022 in South Africa by using the Area Physical Dimension Estimating Method?

Answer:

The estimated cost range for the newly warehouse 2022 in South Africa by using the Area Physical Dimension Estimating Method is R92m to R113.08m.

Based on the information given in the question, to find the estimated cost range for a new warehouse along R21 near OR Tambo Airport in 2022 in South Africa by using the Area Physical Dimension Estimating Method, the following formula can be used:

Cost of New Warehouse = (Cost of Old Warehouse / Area of Old Warehouse) x Area of New Warehouse x Height Index

Where,

Cost of Old Warehouse = R92m

Area of Old Warehouse = 3500m²

Height of Old Warehouse = 4.8m

Height of New Warehouse = 5.9m

Cost Index in Jan 2021 = 150

Cost Index in Jun 2022 = 157

Area of New Warehouse = 4500m²

On substituting the given values in the formula, we get:

Height Index = (5.9 / 4.8)^(157 / 150) = 1.0766

Cost of New Warehouse = (92 / 3500) x 4500 x 1.0766 = R113.08m

Therefore, the estimated cost range for the newly warehouse 2022 in South Africa by using the Area Physical Dimension Estimating Method is R92m to R113.08m.