1. Amazon is planning to expand its fulfillment network by building a new distribution center. The project includes fixed construction costs of $100 million and annual variable operating costs of $20 million. Amazon anticipates an increase in annual revenue by $150 million from the new facility.

Requirements:

• Calculate the total investment and annual operating costs for the new distribution center.
• Determine the ROI and payback period for the expansion project.
• Analyze the expected revenue impact of the new distribution center.
• Discuss the strategic rationale for expanding Amazon's fulfillment network.
• Evaluate the financial implications of the expansion on Amazon's financial statements.
• Recommend logistics and supply chain strategies to optimize efficiency and profitability.