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You are the COO of a company that constructs affordable housing near college campuses.The company had begun construction on a new apartment complex near Smith

You are the COO of a company that constructs affordable housing near college campuses.The company had begun construction on a new apartment complex near Smith College, a small town of 20,000 residents.Smith College has a student population of 5,000.When finished, the complex is estimated to bring in total estimated revenues of $130,000per year against $100,000 in total estimated costs annually.Currently, the foundationshave been laid and the pipes are beginning to be installed underground.

A flood hits.Smith College has estimated that it will see a 25 percentreduction in enrollment for years to come.Your company's CFO brings new estimates ofyearly revenues of $75,000 against new annual cost estimates of $90,000.

The CEO has asked you for an analysis on this construction project.What should youtell her?

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