CP 26-1 Ethics in Action Danielle Hastings was recently hired as a cost m a neted a preseouss office plies Inc Ethics One of Danielle's first assignments was Medical Sup new warehouse. Danielle present value analysis for a to perform a net warehouse because me to his office, 0.75. The plant manager, Jerrod Moore, is intent on bsks Danielle e performed the analvsis and calculated a presen he believes that more storage space is needed. Jerrod a oore, is intent on purchasing the where the following conversation takes place: Jerrod: Danielle, you're new here, aren't you? Danielle: Yes, I am. Jerrod: Well, Danielle, I'm not at all pleased with the warehouse.I need that warehouse for my e capital investment analysis that you performed on this new production. If I don't get it, where am I going to place our output? I Danielle: Well, we need to get produc Jerrod: I agree, and we need a warehouse to do that. t into our customers' hands. The numbers don't lie; the warehouse does chasing a warehouse does not add much Danielle: My analysis does not support constructing a new warehouse. not meet our investment return targets. In fact, it seems to me that pur value to the business. We need to be producing product to satisfy customer Jerrod: The head well as I th tions so that the financial savings will offset the cost? orders, not to fill a warehouse. know as quarters people will not allow me to build the warehouse if the numbers don't add up. You at many assumptions go into your net present value analysis. Why don't you relax some of your assump Danielle: I'm willing to discuss my assumptions with you. Maybe l overlooked something. Jerrod: Good. Here's what I want you to do.I see in your analysis that you don't project greater sales as a result of the warehouse. It seems to me that if we can store more goods, we will have more to sell.Thus, logically, a larger warehouse translates into more sales. If you incorporate this into your analysis, I think you'll see that the numbers will work out. Why don't you work it through and come back with a new analysis. I'm really counting on you on this one. Let's get off to a good start together and see if we can get this project accepted What is your advice to Danielle? ) Chapter 26 CP 26-1 page 1310 Read, discuss and defend your opinion