of net cash flows computed in part (4) indexes computed in part (5) als ranked in parts (6) and (7) 7. Rank the proposals from most attractive ve to least attractive, basl 8. Based on the analyses, on mment on the relative attractiveness of the propos- ects CP 26-1 Ethics in Action Danielle Hastings was recently hired as a cost analyst One of Danielle's first assignments was to perform a y CareNet Medical Supplies Inc. net present value analysis for a Moore, is intent on purchasing the warehouse because Danielle to come to his office performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod he believes that more storage space is needed. Jerrod asks where the following conversation takes place: errod: Danielle, you're new here, aren't you? anielle: Yes, I am. errod: Well, Danielle, I'm not at all pleased with the varehouse.I need that warehouse for my production.If I don't get it, where am I going to place our output? anielle: Well, we need to get product into our customers'hands capital investment analysis that you performed on this new errod: I agree, and we need a warehouse to do that. anielle: My analysis does not support constructing a new warehouse. The numbers don't lie; the warehouse does ot meet our investment return targets. In fact, it seems to me that purchasing a warehouse does not add much lue to the business. We need to be producing product to satisfy customer orders, not to fill a warehouse. rrod: The headquarters people will not allow me to build the warehouse if the numbers don't add up. You know as ell as I that many assumptions go into your net present value analysis. Why don't you relax some of your assump ons so that the financial savings will offset the cost? anielle: I'm willing to discuss my assumptions with you. Maybe l overlooked something. rrod: 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 e warehouse. It seems to me that if we can store more goods, we will have more to sell. Thus, logically arehouse translates into more sales. If you incorporate this into your analysis, I think you'll see that the numbers a larger ill work out. Why don't you work it through and come back with a new analysis. I'm really counting on you on this ne. Let's get off to a good start together and see if we can get this project accepted. What is your advice to Danielle