Case

The Gulf Coast Regional Blood Center, which includes Houston, is facing a severe shortage in blood supply but has recently received a large financial donation from a local philanthropist. The scope should include developing and hosting a drive thru blood drive campaign along with the development and release of a new mobile app to increase visibility and aid in registration. The blood drives will be held at $4$ locations across the Houston metroplex with a goal of getting back to safe levels of available blood as soon as possible. The executive team is excited to see what you come up with.

The program director has asked you to determine if the financial donation is enough to fund operations for the next $10$ years or if additional sources of funding must be pursued.

Financial Considerations

The program director has hired a financial management consulting firm that has designed an investment plan yielding $4\mathrm{.}25\%$ effective annual interest rate.

The annual operating expense, per location, is $$175,000.$

The annual inflation rate is estimated to be $2\mathrm{.}50\%.$

The design and deployment of the new blood drive campaign is $$375,000($assume this cost occurs in Year $0)$

The phone app development project will cost $$500,000($assume this cost occurs in Year $0$

The local philanthropist has provided a donation of $$10,000,000.$

Questions

What is the operating cost for each year of the program?

Based on your estimates, what is the minimum donation required?

If the donation is sufficiently large enough to operate $4$ locations, how many more locations can you operate? If it's not large enough, how many locations must be closed? $($assume that centers need a full year of funding to remain open$).$

Please comment on other costs you may need to consider before making your recommendation.

Submittal

Please submit your answers, including data tables, in a single pdf$.$ Please review the rubric to understand expectations. The maximum paper length is five pages, including the title page. Don't forget to complete the peer evaluation.