Answer:
cost of expansion = $1389859.55
Explanation:
Given data:
Original size = 185,000 ft^2
New expansion = 25000 ft^2
capacity component = 0.62
total cost for original size of clinic is = $17 million
Size of new clinic = 185,000 + 25,000 = 210,000 ft^2
cost of new clinic[tex] = 17,000,000 \times [\frac{size\ of\ new\ clinic}{185,000}]^{0.62}[/tex]
cost of new clinic =[tex] 17,000,000 \times [\frac{210,000}{185,000}]^{0.62}[/tex]
cost of new clinic = $18,389,859.56
cost of expansion = cost of 210,000 ft^2 - cost of 185,000 ft^2
= 18,389,859.56- 17,000,000
cost of expansion = $1389859.55
