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You are building an apartment complex with four, 10,000 square foot buildings based on the same drawings you used in another city two years ago. What is the danger of estimating using the same parametric model of $50 per square foot?

a. It will take much more time than a bottom-up estimating.

b. The technical design is unstable.

c. Historical cost relationships may no longer applicable.

d. It’s not very easy to scale.

Operation Management, Management Studies

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