[Kapil kashiv]

A development company owns 90 acres of land in growing metropolitan area, where it intends to construct office buildings and shopping center. The developed property is rented for 7 years and then sold. The sales price of each building is estimated at 10 times its operating income in the last year of rental. The company estimates that project will include a 4.5 million-square-foot shopping center.The master plan calls for construction of three High rise and four garden office buildings

The company is faced with scheduling problem. If building is completed too early . It may stay vaccant , if it is constructed too late , potential tenats may be lost to other projects. The demand for office space over next 7 years is based on appropriate market studies.

Demand (Thousand of ft square )
__________________________________________________ __________________________

YEAR high rise garden space
1 200 100
2 220 110
3 242 121
4 266 133
5 293 146
6 322 161
7 354 177



The following tables list the proposes capacity of the seven buildings

Garden Building Capacity(ft square) High-rise Capacity
1 60000 1 350,000
2 60000 2 450,000
3 75000 3 350,000
4 75000


The gross annual income is estimated at $ 25 per square foot. The operating expense are $5.75 and $9.75 per square foot for garden and high rise buildings, respectively. The associated construction Costs are $ 70 and $ 105 per square foot, respectively. Both the construction cost and rental income are estimated to increase at roughly the inflation rate of 4%.

How company schedule the construction of 7 building, give the modeling only...

[KBC]

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