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help would be greatly appreciated, work is needed to receive full points. thank you!!! :) COVID-19 brought tremendous change to the world from health, relationship,
help would be greatly appreciated, work is needed to receive full points. thank you!!! :)
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. Most Conservativ e Estimate Likely Estimate Optimistic Estimate Construction cost of warehouse $25,000,00 $23,000,0 $20,000, 0 00 000 Residual value $ 0.00 $2,000,00 $3,000,0 0.00 00 Useful life 25 years 25 years 25 years Estimated annual net cost savings $1,000,000 $3,000,000 $4,000,0 0.00 00.00 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? WhyStep by Step Solution
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