Inn at the Falls

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Owners of the Inn at the Falls are deciding whether to expand their operation. After nine years of growth, 1996 sales had levelled off, and the owners were considering a building expansion to resume growth. Although the expansion would add significantly to the debt load, it would reposition the Inn's facilities for a more upscale clientele. In addition, the owners would like to retire in two to five years by selling the business and are wondering if they will be able to recoup their investment in this time period.
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