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Woolman College is expanding their on - campus student center. Their current facility is 2 0 , 0 0 0 square feet and costs $
Woolman College is expanding their oncampus student center. Their current facility is square feet and costs $ month in utilities and $ month in insurance. Five years ago, they remodeled the current facility for $ The proposed expansion will increase the size of the facility to square feet, will include a fullfunctioning restaurant and will require the remodeled sections to be torn down and renovated. Management estimates they will need to purchase an additional $ in kitchen equipment. Also, utilities will increase to $ month and insurance will increase to $ month. To expand the facilities, Woolman will need to use $ that is currently in their investment account, returning annually. The opportunity costs of choosing to expand the facilities are:Group of answer choicesThe $ of additional restaurant equipmentThe $ of lost investment returnsThe $ month of new utilities costThe $ of old coffee shop and restaurant equipment
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