Indianguy..Its rather a wide ranging set of questions you ask! You have to really start by deciding what level of approval you want the sim to have - for example a state - of the art sim with zero flight time approval for type conversion is going to be a lot more expensive than a fixed base procedure trainer. As a VERY rough guide you would be looking at around 15 - 20 million us dollars for a new build zero flight time sim for a modern transport jet. Hourly rate ? Depends on supply and demand of course but around 750 usd per hour without Instructor would be in the ball park. No, use of a small jet for such training is not an alternative cos a very considerable part of the sim advantage is demonstration and practice resolution of system malfunctions or emergencies which are either impossible or too hazardous to perform in actual flight.