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Additional income - Base on income per sq ft Additional revenue Alternative 1 Alternative 2 Current income $ 1 8 0 , 0 0 0

Additional income - Base on income per sq ft
Additional revenue Alternative 1 Alternative 2
Current income $180,000 $220,909 $261,818
Current sq. ft 220027003200
Income per sq. ft $81.82 $81.82 $81.82
Add'n Rev $40,909 $81,818
Based on probabilities
Total revenue income Prob Expected value
alternative 1 $210,00020% $42,000
$225,00050% $112,500
$250,00030% $75,000
Exp.Val $229,500
Add re $49,500
Total revenue income Prob Expected value
alternative 2 $240,000 $120,000.00
$250,000 $100,000.00
$270,000 $27,000.00
$247,000.00
$67,000.00
Evaluate the sensitivity of the investments and make a clear recommendation on financial grounds to accept or reject the investments.

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