Western Day Care: The Emery Street Expansion Assessment Answer

Feasibility of the Gymnasium Renovation and Calculate Payback

Decision Variables:

The number of children in each age group, the fees charged per kid, the cost of refurbishment, and the annual expenses related to operating the child care facility would normally be among the decision variables in the example scenario.

For instance, in this situation, a kid would generally get roughly 10% of the renovation costs. This indicates that the overall budget available is roughly 40% of the nursery facility's original cost. Furthermore, children would cover roughly 10% of the annual expenses of the nursery. This offers us a rough sense of the proportion of renovation spending that would go towards the nursery facility's needs.

Decision on Renovation:

We would need to evaluate a number of variables, including the predicted revenue, annual costs, net profit, payback duration, and the renovation's financial viability, before deciding whether to move forward. We may determine whether the renovating is practical and is in connection with the objectives and available resources of the Western Day Care Centre by carefully studying these elements.

It is directed to put off the renovation work until the company sees a better return on its financing. We must know the projected tuition rate and the total number of participants to calculate the potential annual income amount. Additionally, we must understand the project's operational expenditures, which contain the cost of labor and materials, utilities, equipment, and anticipated yearly maintenance and operational costs.

Given that the Western Day Care Centre is a for-profit organization, we must take its financial possibility into account. This is due to the possibility that the owner/operator of the Centre may have to pay for the restoration out of pocket, which could have an impact on the Center's financial condition. We must also complete the repayment time for the renovation job. The payback period is the length of time needed to recoup the project's expenses. This can help us determine whether the plan is feasible from a financial standpoint.

The creation of a business strategy is the initial stage in carrying out the feasibility analysis. Four basic documents that are a component of the feasibility analysis are included in the business plan:

• the project cost evaluation;
• the project return assessment;

 and the project financial feasibility assessment.

The project's objectives will be described in the project feasibility assessment.

• Will offer a project cost/benefit analysis.
• Will calculate the amount of labour and time needed to finish the project.

An estimate of the project's total expenses, including startup costs, annual operating costs, and annual capital expenditures, will be given in the financial feasibility study.

• Will reveal the project's revenue/cost and annual return analysis.

The project cost assessment:

• Will determine costs and financial requirements for the project's start-up and ongoing operation;
• Will determine the cost of the project and its components.

The project return analysis:

• Will show that there is a chance for the project to earn a profit.

Model Building:

The model can be created by taking into account the revenue from each age category according to the number of kids and the charge schedule. The annual costs, which should include wages and other charges, should be taken into account. Along with any other pertinent financial concerns, the cost of the renovation should also be taken into account. By changing the major inputs and analysing the effects on the net profit and payback period, sensitivity analysis can be carried out.

The effectiveness of a project can be impacted by a number of variables, including construction costs, materials, and equipment. In actuality, the project will also include a number of additional elements, such as overhead and incentives. Furthermore, financial terms differ frequently from one contract to the next. Many times, businesses are compelled to sign a contract before they are certain how much money they would have to pay. In other instances, projects are flexible built, or "design-build," with numerous businesses collaborating to offer the most affordable option. In a design-build project, one contractor implements the plan while two contractors collaborate on the design phase. This approach can be economical, but it can also restrict project scope.

A more conventional sort of contract consists of offers from a single business. The contractor accepts the bid that the customer has chosen. The most typical technique of contracting for building projects is this kind of project. The sole source contract, which occurs when a project is entirely given to one company, is the most common model in the United States. Because they are frequently bigger projects that can be contracted through several organisations, the government normally does not have a sole source contract to purchase construction services.

Important Sensitivities:

Variations in enrollment figures, fee adjustments, annual cost adjustments, and changes in renovation expenditures are the main sensitivities to take into account when evaluating the renovation. The decision's potential risks and uncertainties can be identified with the aid of these sensitivities, enabling a more thorough review.

Analyse the project's financial viability. The ability of the project to continue operating during the renovation time is one important goal in evaluating renovation projects. The likelihood of a return on investment is lower than it would be if the project only required a little capital investment.

Determine the project's operational viability. The ability of a project to perform its fundamental function within budget and without endangering its potential to return a net operating loss (NOL) to the owner is one of the primary goals in project evaluation. The project will have a matching NOL if it is unable to generate income, hence it might be challenging to claim it as a NOL.

If the project has a fixed price, the revenue should be sufficient to cover the costs and ensure that it can fulfil its contractual commitments to the owner.

Check to see if the project has enough reserves. It's possible that fixed-price contracts include unique accounting requirements that prevent the project's book cost from accurately reflecting its actual cost. These reserves are frequently found in large building or remodelling projects. The reserves are intended to pay for unforeseen expenditures associated with construction or unforeseen costs incurred during the renovation period. The project's hazards should be taken into account while determining the size of the reserves..

Determine the project's financing potential. Whether a renovation project will be able to acquire financing for its completion is a major risk. For fixed-price contracts, there are basically two financing choices. The first is to employ a bank loan to finish the job; this loan could be set up as either a construction loan or a loan for renovations.

The owner's funds could be used to fund the project's construction as an alternative financing option. There are other financing sources that the project may be eligible for in either scenario.

Consider the investment's return. Return on Investment (ROI) is a crucial factor to take into account while assessing the project. ROI is the proportion of a project's cost to its anticipated value.

For instance, if a building has 100,000 square feet and renovations are projected to cost $1 million, the ROI is computed as $100,000 divided by $1,000,000, or 10%. On the other side, the ROI would be $0.5 million/$1,000,000 or 50% if the owner paid $1 million and received a building of 100,000 square feet back for only $0.5 million (assumed there are no construction expenditures involved).

To establish whether the project makes financial sense, compare the ROI with the projected revenue. The owner will probably want to move on with the project if it has a high ROI yet is predicted to bring in $500,000 in revenue. The project could not be financially worthwhile, though, if the ROI is poor and the estimated revenue is only $100,000.

Determine the capital risk of the project. Fixed-price contracts could come with additional risks that aren't taken into account by other evaluation techniques. These dangers might be related to the owner's or the contractor's financial standing. Although these risks are not frequently included in the project review, there may be times when they must be considered.

The owner is in charge of project completion and the contractor is in charge of all construction costs under a single common fixed-price contract agreement. It is typical for the owner to take over and finish the job if the contractor is unable to do so. The owner is obligated to finish the project if the contractor fails to perform.

The owner may take on more risks under this kind of contract than it would under a project with a time-and-materials arrangement. In this scenario, the contractor would be at danger of not finishing the job while the owner would be accountable for its completion. The owner would also be responsible for covering any increases in construction expenses that go beyond the total amount initially paid. The owner would also be liable for any escalation in construction expenses if the contractor went into default on the project.

Age Category for the New Classroom:

According to the information that is currently available, the age group that will be assigned to the new classroom will rely on the requirements and preferences of the Western Day Care Centre. By evaluating the demand for each age group, the capacity of the current facilities, and the capacity to deliver suitable care and education to the children in that age group, it may be determined. The age groups that will be developed could also serve as a middle ground for resolving the preschool's needs.

Children who are eligible to participate in an after-school care programme include those who are receiving financial aid under the Early Childhood Care Benefit, the Education Tax Credit, the Alberta Enhanced Child Benefit, or other provincial or federal government programmes. When choosing the age groups to be developed, it should be taken into account if the Western Day Care Centre and its participants are not currently receiving benefits.

Parents have the right to a hearing about the determination of their child's eligibility for after-school care and assistance under the Child and Family assistance Act (section 37.1). The parents or their legally appointed representative have 60 days to request a hearing if this right is not waived, and the request must be in writing. The notification of the hearing must include the date of the request, and the hearing must take place within 30 days of that date. Parents or the legally appointed representative have an extra 30 days to appeal the decision if the appeal is upheld after the hearing. The notification of the appeal should include the hearing date. The appeal must be sent in writing to the same office that issued the original notice, and it must be addressed to that office. The date of the appeal hearing must fall within 30 days of the date of the initial notification, even if the hearing and appeal were scheduled at the same time. The notice must also include the date of the hearing and appeal.

The Child and Family Services Registry is accessible to parents. This right is outlined in both regulation 11.2 of the Child and Family Services and Child Protection Act and section 37.2 of the Child and Family Services Act. The Child and Family Services Registry contains sensitive and/or personal information that is subject to a confidentiality obligation and may not be shared unless specifically authorised by the regulations enacted under this Act or by the Act itself.

It is not necessary to name or list the kids in a particular sequence. The youngsters should be given the option to refuse identification if they do not want to have their requirements determined.

There is no need to identify or identify children in a specific order. If the children do not want to be identified, they should have the opportunity to decline identification and still have their needs assessed.

The Child and Family Services Board is not compelled to give the applicant personal identity or to name specific children. Administrative personnel and personnel who evaluate children do this. To make the administration of child assessment services and services easier, the Child and Family Services Board may give the applicant a personal identity number.

The maximum number of kids that can be enrolled in a given programme is not stated in this policy. The Child and Family Services Board has established an internal policy with the goal of directing staff members who will implement their own decisions and suggestions. Decisions will be made if the needs of the children and families exceed the capacity that is available.

References:

Alinezhad, A. and Khalili, J. (2019). New methods and applications in multiple attribute decision making (MADM) (Vol. 277, 103-08). Cham: Springer.

Delanaye, P., Jager, K. J., Bökenkamp, A., Christensson, A., Dubourg, L., Eriksen, B. O., ... & Van Den Brand, J. A. (2019). CKD: a call for an age-adapted definition. Journal of the American Society of Nephrology: JASN, 30(10), 1785.

Galimshina, A., Moustapha, M., Hollberg, A., Padey, P., Lasvaux, S., Sudret, B., & Habert, G. (2021). What is the optimal robust environmental and cost-effective solution for building renovation? Not the usual one. Energy and Buildings, 251, 111329.

Galimshina, A., Moustapha, M., Hollberg, A., Padey, P., Lasvaux, S., Sudret, B., & Habert, G. (2021). What is the optimal robust environmental and cost-effective solution for building renovation? Not the usual one. Energy and Buildings, 251, 111329.

He, C., Hou, Y., Ding, L., & Li, P. (2021). Visualized literature review on sustainable building renovation. Journal of Building Engineering, 44, 102622.

Siskhawati, L., & Maulana, H. A. (2021). The Influence of Brand Ambassador and Korean Wave on Purchase Decision for Neo Coffee Products. Jurnal Ekonomi Dan Bisnis, 24(1), 1-7.

Toussaint, A., Hüsing, P., Gumz, A., Wingenfeld, K., Härter, M., Schramm, E., & Löwe, B. (2020). Sensitivity to change and minimal clinically important difference of the 7-item Generalized Anxiety Disorder Questionnaire (GAD-7). Journal of affective disorders, 265, 395-401.

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