BPP kit Newtown school ( incremental budget )

Capital expenditure 65,000( actual cost ye 31 may 20X3) + 6%( inflation) 68,900( budget cost for ye 20X4) notes: The full $65,000 actual costs for the year ended 31 May 20X3 related to improvements made to the school gym. This year, the canteen is going to be substantially improved, although the extent of the improvements and level of service to be offered to pupils is still under discussion. There is a 0.7 probability that the cost will be $145,000 and a 0.3 probability that it will be $80,000. These costs must be paid in full before the end of the year ending 31 May 20X4. ans : Expected capital expenditure [(0.7 × $145,000) + (0.3 × $80,000)] = 125,500 Would you mind explaining this to me! please why $65000 not taken??