1. Woolman College expands on-campus student center. Its current facilities are 20,000 square feet and it costs $1,500/month for utilities and $400/month for insurance. Five years ago, they remodeled the existing facility for $30,000. The proposed expansion will increase the size of the facility to 40,000 square feet, include a fully functioning restaurant and will require demolition and renovation of remodeled sections. Management estimates they will need to purchase an additional $25,000 in kitchen equipment. Also, utilities will increase to $3,000 per month and insurance to $1,000 per month. To expand the facilities, Woolman will need to use the $500,000 currently in its investment account, yielding a 10% annual return. 

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