Reference no: EM132840656

Question - These are excerpts from an annual report of Office works Inc. (an American office retail company):

We operate 328 retail stores overseas in seven countries, with the largest concentration of stores in the UK, Germany and the Netherlands. Our North American Retail segment consists of 1,555 stores in the United States and 316 stores in Canada at the end of fiscal Year3. We operate a portfolio of four retail store formats, tailored to the unique characteristics of each location. The ''Dover'' superstore represents the majority of our U.S. store base. The customer friendly ''Dover'' design appeals to the customer with an open store interior that provides a better view of our wide selection and makes it easier to find products. We also operate a 14,600 square foot store format designed for rural markets and a 10,000 square foot store suited to dense urban markets such as New York City. Additionally, we operate approximately 20 stand alone copy and print shops to address the attractive quick print market opportunity. This 4,000 square foot store is designed for locations with high customer density and offers a full service copy and print shop and a broad assortment of core office supplies.

We plan to open approximately 40 new stores in North America in Year4, compared to 48 new stores in Year3, and 106 new stores in Year2. The growth program for Year4 will continue to focus on adding stores to existing markets as well as expansion into new markets.

Capital Expenditures of the last three years are as follows:

Considering Capital Expenditures per new store opened in Year3 and Year2 combined, what is the total forecasted Cap Expenditures in Year 4 for opening new stores in North America?