Hoffman was confident a water park was just what Laughlin needed as an additional attraction to golf and the river. He could see a lazy river encircling the park, with water slides, food and drink concessions, and maybe even a wave pool. This could be big! He could charge $20 per person for admission for non-hotel guests, and build a discounted admission to the park into his own room packages, realizing a higher average daily rate (ADR)(see Table I) in the process. He was hoping to increase his ADR by $5 and offer $10 admission for hotel guests. He anticipated that 50 percent of the 30,000 water park customers he expected to attract each year would be hotel guests. Hoffman believed that the water park would generate some latent demand for the hotel and that about 25 percent of those water park customers staying at the hotel would represent new business. He figured these new guests would stay an average of approximately 2 nights. The incremental costs associated with these additional room nights would come in at about 30 percent. Further, anticipating that some parents would leave their kids to enjoy the water park while they gambled, Hoffman thought it was reasonable to expect average additional casino play of $50 for every non-hotel guest visiting the water park and $100 for every hotel guest taking advantage of this new amenity Revenues were expected to increase by four percent a year over the project’s 20-year depreciable life. Hoffman thought these numbers were conservative, particularly because he didn’t include any additional food and beverage revenue.