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Regional Regulations and Room of Expansion
Regional Regulations:
It is important to check at an early stage that the proposed location does not infringe any local regulations. A study must be made of the appropriate by laws and of any special regulations concerning the disposal of effluents, hiring etc.
Room of Expansion:
It is most unwise to build to the limit of any unless the long range forecast indicated very definitely that the initial building will never be required to increase in size. This is a most unlikely circumstance and adequate room for genuine expansion should be allowed.
The following is a payoff table giving profits for various situations. States of Nature Alternatives A B C Alternative 1 100 120 180 Alternative 2 120 140 120 Alternative 3 200 100
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