Danielle Hastings was recently hired as a cost analyst byCareNet Medical Supplies Inc. One of Danielle's firstassignments was to perform a net present value analysisfor a new warehouse. Danielle performed the analysisand calculated a present value index of 0.75. The plantmanager, Jerrod Moore, is very intent on purchasing thewarehouse because he believes that more storage spaceis needed. Jerrod asks Danielle into his office and thefollowing 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 withthe capital investment analysis that you performedon this new warehouse. I need that warehouse formy production. If I don't get it, where am I going toplace our output?• Danielle: Well, we need to get product into ourcustomers' hands.• Jerrod: I agree, and we need a warehouse to dothat.• Danielle: My analysis does not supportconstructing a new warehouse. The numbers don'tlie; the warehouse does not meet our investmentreturn targets. In fact, it seems to me thatpurchasing a warehouse does not add much value to the business. We need to be producing productto satisfy customer orders, not to fill a warehouse.• Jerrod: The headquarters people will not allow meto build the warehouse if the numbers don't add up.You know as well as I that many assumptions gointo your net present value analysis. Why don't yourelax some of your assumptions so that thefinancial savings will offset the cost?• Danielle: I'm willing to discuss my assumptions withyou. Maybe I overlooked something.• Jerrod: Good. Here's what I want you to do. I see in youranalysis that you don't project greater sales as a result ofthe warehouse. It seems to me that if we can store moregoods, then we will have more to sell. Thus, logically, alarger warehouse translates into more sales. If youincorporate this into your analysis, I think you'll see thatthe numbers will work out. Why don't you work it throughand come back with a new analysis. I'm really counting onyou on this one. Let's get off to a good start together andsee if we can get this project accepted.What is your advice to Danielle? Considereverything that you have learned this semesterand choose 1 aspect to comment on.

Note: The answer has been provided in a generalized manner.In the accompanying case, we dive into…

Answered: What is your advice to Danielle?…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Describe your observations from the below passage that are relevant to classroom management and student engagement by including the teacher's actions. There are 20 students in my kindergarten classroom. The subject matter for this learning experience was science, focusing on speaking, listening, and viewing. The demographics include 3 students of Hispanic origin who speak English as a second language and students from rural backgrounds. Listening and viewing goals were to exhibit respectful body language by keeping eye contact with their speaker, actively listening without talking, and keeping their hands and feet still. Speaking goals were to exhibit effective speaking by looking at their audience and keeping their body still, speaking slowly at an appropriate volume, and showing their work. Next, students referred to the visuals and correctly modeled these behaviors while learning about weather features. I used formative assessment strategies to check for comprehension. Strategies…
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What is your advice to Danielle? Consider everything that you have learned this semester and choose 1 aspect to comment on.