Roche Brothers is considering a capacity expansion of its supermarket. The landowner will build the addition...

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Roche Brothers is considering a capacity expansion of itssupermarket. The landowner will build the addition to suit inreturn for $175,000 upon completion and a? five-year lease. Theincrease in rent for the addition is $8,000 per month. The annualsales projected through year 5 follow. The current effectivecapacity is equivalent to? 500,000 customers per year. Assume 2%percent pretax profit on sales.
YEAR : 1 2 3 4 5
Customers: 550,000 610,000 685,000 700,000 725,000
Avg sales/customer: $51.00 $53.00 $58.00 $60.00$66.00
a) . If Roche expands its capacity to serve? 700,000 customersper year now? (end of year? 0), what are the projected annualincremental pretax cash flows attributable to this? expansion?
The projected annual incremental pretax cash flows attributableto this expansion in year 0 are
?$___. enter your response as an integer.
The projected annual incremental pretax cash flows attributableto this expansion in year 1 are $_.
The projected annual incremental pretax cash flows attributableto this expansion in year 2 are $
The projected annual incremental pretax cash flows attributableto this expansion in year 3 are $>
The projected annual incremental pretax cash flows attributableto this expansion in year 4 are $ .
The projected annual incremental pretax cash flows attributableto this expansion in year 5 are $.
b) If Roche expands its capacity to serve? 700,000 customers peryear at the end of year? 2, the landowner will build the sameaddition for $230,000 and a? 3-year lease at $11,000 per month.What are the projected annual incremental pretax cash flowsattributable to this expansion?alternative?
The projected annual incremental pretax cash flows attributableto this expansion in year 2 are $
The projected annual incremental pretax cash flows attributableto this expansion in year 3 are $..
The projected annual incremental pretax cash flows attributableto this expansion in year 4 are $.
The projected annual incremental pretax cash flows attributableto this expansion in year 5 are $.

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Roche Brothers is considering a capacity expansion of itssupermarket. The landowner will build the addition to suit inreturn for $175,000 upon completion and a? five-year lease. Theincrease in rent for the addition is $8,000 per month. The annualsales projected through year 5 follow. The current effectivecapacity is equivalent to? 500,000 customers per year. Assume 2%percent pretax profit on sales.YEAR : 1 2 3 4 5Customers: 550,000 610,000 685,000 700,000 725,000Avg sales/customer: $51.00 $53.00 $58.00 $60.00$66.00a) . If Roche expands its capacity to serve? 700,000 customersper year now? (end of year? 0), what are the projected annualincremental pretax cash flows attributable to this? expansion?The projected annual incremental pretax cash flows attributableto this expansion in year 0 are?$_______. enter your response as an integer.The projected annual incremental pretax cash flows attributableto this expansion in year 1 are $_______.The projected annual incremental pretax cash flows attributableto this expansion in year 2 are $__________The projected annual incremental pretax cash flows attributableto this expansion in year 3 are $________>The projected annual incremental pretax cash flows attributableto this expansion in year 4 are $ ________.The projected annual incremental pretax cash flows attributableto this expansion in year 5 are $________.b) If Roche expands its capacity to serve? 700,000 customers peryear at the end of year? 2, the landowner will build the sameaddition for $230,000 and a? 3-year lease at $11,000 per month.What are the projected annual incremental pretax cash flowsattributable to this expansion?alternative?The projected annual incremental pretax cash flows attributableto this expansion in year 2 are $________The projected annual incremental pretax cash flows attributableto this expansion in year 3 are $________..The projected annual incremental pretax cash flows attributableto this expansion in year 4 are $________.The projected annual incremental pretax cash flows attributableto this expansion in year 5 are $________.