Question: With higher demand for individual's self - storage options, Lock - Up Storage has been opening self - storage mega locations throughout the Southeast. Once

With higher demand for individual's self-storage options, Lock-Up Storage has been opening self-storage mega locations throughout the Southeast. Once of the most popular locations is in Gainesville, Florida, near the University of Florida main campus. In order to meet the potential demand, Lock-Up has the option to build a new (second) facility just two blocks away, expanding its current site, or simply do nothing and potentially turn away demand. Analysts believe that there will be a 30% chance of a continued strong market for self-storage, a 45% chance that the market will remain stable, and a 25% chance that the market will decline. Lock-Up predicts that their expected profit for the upcoming fiscal year will be as follows under each market scenario:

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