Amazon.com, Inc. considers expanding its warehouse facilities. In January 2039, the company estimates the following costs:

• Current Operating Costs: $12,000,000
• Expansion Costs: $18,000,000
• Additional Revenue from Expansion: $24,000,000

Requirements:

• Perform relevant cost analysis for the expansion decision.
• Calculate the net benefit of the expansion.
• Analyze the impact of the expansion on current operations.
• Prepare a recommendation report for management.
• Discuss the potential risks and benefits of the expansion.