Prestige Smash Repairs Pty Ltd $($PSR$)$ is a smash repair business located in the western suburbs of Sydney. The business was started by Martin Smith in the late $1960$s but is now run by David and Mark Smith, the two sons of founders of the business. David and Mark each own $30\%$ of the issued ordinary shares in the company but several other family members also own shares and the company is expected to perform well and pay annual dividends. The company$$s Board of Directors consists of David, who is Managing Director, Mark, their sister Jenny and their cousin Alice who is the company secretary$.$ There is one independent director and he is Michael Ellis a family friend and the family tax accountant. The company chairman is their Uncle, Chris Smith who was the other founder of the company. Alice works in the business as the Accountant$/$Office Manager and has recently completed an MBA at UTS. The smash repair business has been through some turbulent times in recent years mainly due to the increasing dominance and control exerted by the major insurance companies. PSR has survived and managed to remain profitable through the reorganisation of the industry and is a registered repairer for the major insurance companies and this ensures a steady stream of insurance work. On top of this Mark has built up a good reputation with two historic car clubs that has resulted in restoration workon vintage cars that has proved profitable and interesting work. The company operates from premises that it has owned since the business was incorporated. At the time of incorporation it was decided to purchase two adjoining blocks of land and construct the workshop, spray booth and office on one block and keep the other as an investment or for future expansion. During the years the buildings have been renovated and updated several times with the last occasion being only eighteen months ago when a new spray booth was constructed. The workshop etc is still contained on one block. The other block is still vacant, not very securely fenced and has to be maintained by one of the local lawn mowing contractors to keep the grass and shrubs tidy. This maintenance currently costs $$18,000$ p$.$a$.$ and is expected to increase by $3\%$ p$.$a$.$ for thenext ten years. This expense will be eliminated if the site is developed. For some time now Jenny and Alice have been advocating selling the land as it would release a significant amount of money which could be paid out to shareholders as a special dividend. However Chris has always had a dream that the land $2$ would be used to expand the business and is not keen to sell. The company is working at fullcapacity five days a week and Saturday overtime is not unusual. Some historical car work had to be declined recently. The major bottleneck is the spray booth where cars have to remain for a minimum drying period. The company has two spray booths but one can only be used for parts not full bodies. The company also had a problem with the parking of vehicles during the day and could only use the spare ground for parking during dry weather. In wet weather shuffling cars was not only frustrating but an inefficient use of staff time. Some months ago Chris had asked David and Mark to investigate the feasibility of expanding the business and Mark has just completed an overseas trip $($a combination of work and holiday with his wife and family$)$ during which he completed some research into the latest techniques used in the smash repair business in Europe. He had also studied the latest spray booth technology and had been very impressed by a new British spray booth. The trip had been very expensive and it had cost $$39,800$ for airfares, accommodation and meals. As most of the trip was business the company has paid for this expense. On returning from the trip Mark met with Chris, David and Alice to outline an idea that he had been considering for some time. Mark stated at the meeting that he believed that if the company added a new spray booth and workshop at the back of the vacant block he would be able to significantly increase businessparticularly in the restoration of vintage and historical cars. Car clubs were growing and keeping the cars in pristine condition was important to the enthusiasts in these clubs. PSR had built up a solid reputation for high quality work in this area and this work provided far bigger margins than insurance work. He firmly believed that PSR would also be able to take on more insurance work withthe increased spraying capacity. Mark tabled a projected revenue forecast for both the historical car business and increased insurance work. The forecast revenue is detailed in Appendix $1.$ He also outlined some preliminary estimates on the costs involved. The building to house the spray booth andworkshop would cost about $$236,000$ to erect. The building would be constructed on the back half ofthe block and the front half of the block would be converted to an all$-$weather car park for cars awaiting repair and customer a