a cost index is a ratio of the cost of something now to its cost at some time in the past

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dex is a ratio of the cost of something now to its cost at some time General equation is: C t = C 0 (I t /I o ) mple: The construction cost of a certain highway ramp was $380,000 in 1990. tion cost index had a value of 4770.03 at that time. If a similar project i ructed at a time when the index value is 7059.63, what would the estimated c Solution: C t = 380,000 (7059.63 / 4770.03) = $562,400

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A cost index is a ratio of the cost of something now to its cost at some time in the past. Example: The construction cost of a certain highway ramp was $380,000 in 1990. The ENR. construction cost index had a value of 4770.03 at that time. If a similar project is to be. - PowerPoint PPT Presentation

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Page 1: A cost index is a ratio of the cost of something now to its cost at some time in the past

A cost index is a ratio of the cost of something now to its cost at some time in the past

General equation is: Ct = C0(It/Io)

Example: The construction cost of a certain highway ramp was $380,000 in 1990. The ENRconstruction cost index had a value of 4770.03 at that time. If a similar project is to be

constructed at a time when the index value is 7059.63, what would the estimated cost be?

Solution: Ct = 380,000 (7059.63 / 4770.03)

= $562,400

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