Order Instructions
Instructions
Maryland Home and Community-Based Services (MHCBS) is considering a major expansion that will enable it to attract a different clientele to its organization. Currently, they serve only 34% of the frail elderly seniors and persons with disabilities in the local area. The new chief executive officer (CEO) would like the organization to expand its revenue stream by investing in a multipurpose center serving healthy seniors by offering them arts and crafts and health and wellness programs. The center will also contain an Internet café offering nutritious breakfast and lunch options.

The CEO has commissioned a needs assessment and the study’s results reveal the following:

Approximately 120 seniors in the local community are interested in this center.
The CEO expects growth of the aging population to be at least 10% each year.
Cost growth across all areas of expenses is expected to rise by 5% each year.
The CEO has presented her proposal and financial information to the Board of Directors, and they have advised her that they are in full support of her strategy only if the program is a benefit to the community and if the organization can recoup its investment in five years.
The CEO has asked you if this can be achieved. Based on the information presented in the scenario:

Calculate break-even and payback period analyses. See Excel Spreadsheet to show your calculation.
Explain, in a memorandum to the CEO, their implications. Provide the discussion in the memorandum (must be in proper Memo format).

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