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Calculate the minimum EOL. Help me please.. ASAP.. thanks in advance The Lake Placid Town Council has decided to build a new community center to

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Calculate the minimum EOL. Help me please.. ASAP.. thanks in advance

The Lake Placid Town Council has decided to build a new community center to be used for conventions, concerts, and other public events. But, considerable controversy sur- rounds the appropriate size. Many influential citizens want a large center that would be a showcase for the area. But the mayor feels that if demand does not support such a center, the community will lose a large amount of money. To provide structure for the decision process, the council narrowed the building alternatives to three sizes: small, medium, and large. Everybody agreed that the critical factor in choosing the best size is the number of people who will want to use the new facility. A regional planning consultant provided de- mand estimates under three scenarios: worst case, base case, and best case. The worst-case scenario corresponds to a situation in which tourism drops significantly, the base-case scenario corresponds to a situation in which Lake Placid continues to attract visitors at cur- rent levels, and the best-case scenario corresponds to a significant increase in tourism. The consultant has provided probability assessments of 0.10.0.60, and 0.30 for the worst-case, base-case, and best-case scenarios, respectively. The town council suggested using net cash flow over a five-year planning horizon as the criterion for deciding on the best size. The following projections of net cash flow, in thousands of dollars, for a five-year planning horizon have been developed. All costs, in- cluding the consultant's fee, have been included. Center Size Small Medium Large Worst Case 400 -250 -400 Demand Scenario Base Case 500 650 580 Best Case 660 800 990

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