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The Astro World amusement park has the opportu-nity to expand its size now (the end of year 0) by purchasing adjacent property for $250,000 and

The Astro World amusement park has the opportu-nity to expand its size now (the end of year 0) by purchasing adjacent property for $250,000 and add-ing attractions at a cost of $550,000. This expansion is expected to increase attendance by 30 percent over projected attendance without expansion. The price of admission is $30, with a $5 increase planned for the beginning of year 3. Additional operating costs are expected to be $100,000 per year. Estimated atten-dance for the next five years, without expansion, is as follows:

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