The cost for constructing a small building in 1999 was $700,000. The construction cost index was 6059 at that time. The estimated cost of a similar building when the index value is 10,000 is closest to: (choose one)
(a) $424,130
(b) $1,155,300
(c) $1,347,200
(d) $1,384,500
C2 = 700,000(10,000/6059)
= $1,155,306
Answer is (b) $1,155,300
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