Certain decisions require some sort of risks. The new location alone run a substantial amount of risks. Placing a facility on another side of town will come with some unforeseeable cost. Being that they place their studios in a residential area, you will have to discuss property tax on the house, and the safety of the neighborhood.
The risk of this becoming a failed expansion has about a 30% chance. I think that it is worth the %70 chance that it is a success. There is a 60% chance the new facility will be in very high demand. If so, there will be a return in investment plus a $600,000 profit within the first year alone. There is also a 40% chance that it will be in low demand in which profit will not be made for another 4 years. I think given the chance of it being in high demand that they should proceed with the investments into the new facility
City Dump Records 