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Business, 08.03.2021 19:30 marissagirl4903

The Astro World amusement park has the opportunity to expand its size nowâ (the end of yearâ 0) by purchasing adjacent property for â$ and adding attractions at a cost of â$. This expansion is expected to increase attendance by percent over projected attendance without expansion. The price of admission is â$â, with aâ $5 increase planned for the beginning of year 3. Additional operating costs are expected to beâ $100,000 per year. Estimated attendance for the next fiveâ years, without expansionâ, is asâ follows: Year 1 2 3 4 5
Attendance 31,000 35,000 36,750 38,500 42,000

a. The cash flows attributable to theâ park's expansion in year 1 are:
b. The cash flows attributable to theâ park's expansion in year 2 are:
c. The cash flows attributable to theâ park's expansion in year 3 are:
d. The cash flows attributable to theâ park's expansion in year 4 are:
e. The cash flows attributable to theâ park's expansion in year 5 are:

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