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dont use for 1b class COVID-19 brought tremendous change to the world from health, relationship, and economic perspectives. For this discussion, focuses on the economic
dont use for 1b class
COVID-19 brought tremendous change to the world from health, relationship, and economic perspectives. For this discussion, focuses on the economic perspectives to evaluate uncertainty in a capital investment analysis. Everyone was impacted by the economic impacts of COVID-19 to include nonprofits. Donations plummeted and volunteers dried up but the community's need for help only grew. The table below provides information for the Transformation Station, a nonprofit that focuses on people experiencing homelessness for the first time. Transformation Station has determined they need a bigger storage facility. They first need to perform an analysis to determine whether to build a larger storage facility. There is a lot of uncertainty with COVID-19 so include sensitivity analysis in your calculations. Conservat Most Optimist ive Likely ic Estimate Estimate Estimate Construction cost of $25,000,0 $23,000 $20,000 warehouse ,000 ,000 Residual value $2,000 $3,000, $ 0.00 000.00 000 Useful life 25 years 25 years 25 years Estimated annual net $1,000,00 3,000 $4,000, cost savings o 000.00000.00 Rate of return 10% 12% 14% Part 1: Perform a sensitivity analysis for the three options above. Show your work to receive full points. Part 2: If you were the director of the Transformation Station, would you build the warehouse? Why? 00 Step by Step Solution
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