The large-scale investments offer a higher return on

investment (ROI), with Php 1,000,000.00, during busy season,

compared to refurbishing or redecorating the units and doing
nothing. To support the development, Mr. Penoy would need to
invest a large sum of money, hence there is a cost involved
Php1,500,000.00. The alternative to remodel the apartments
would cost Php500,000.00 but would also make Php500,000.00
in profit, however obviously much less so than the first option
during peak seasons. Nevertheless, during stagnant seasons, both
options provide the same Php 100,000.00. As a final option, Mr.
Penoy also has the option of doing nothing, in which case he would
incur no costs and make no gains. I would advise him to go with
the large-scale investment because business is all about taking a
risk and higher the reward.