Roche Brothers is considering a capacity expansion of its supermarket. The landowner will build the addition to suit in return for 200,000 upon completion and afive-year lease. The increase in rent for the addition is 11,000 per month. The annual sales projected through year 5 follow. The current effective capacity is equivalent to 500,000 customers per year. Assume a 3 percent pretax profit on sales

If Roche expands its capacity to serve 700,000 customers per year now (end of year 0), what are the projected annual incremental pretax cash flows attributable to this expansion?

The projected annual incremental pretax cash flows attributable to this expansion in year 0 are ______

Year	1	2	3	4	5
Customers	550,000	600,000	685,000	700,000	715,000
Average Sales per Customer	$50.00	54.00	58.00	60.00	$64.00