A company is planning to expand its business in a few years. New plant construction costs are estimated to be $4.75 per square foot. The company invests $850,000 today at 6% compounded quarterly/
a) How many square feet could be built in 3 1/2 years?
b) If the company waits for a total of five years, the construction costs increase to $5.10 per square foot. How many square feet could they build if they waited a total of five years?
c) What would you recommend that the company do and why?
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How about giving this one a try ?
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