1.Patricia Parisi must determine if the expand of the school should be made. The criteria she must develop is a financial analysis based on the identification of the cash flow, the risk of cash flow and the expected outcome.
2. Cash flow for the expansion
*There would be 13 new teachers to account for the 1:8 ratio of 100 children.
*The maintenance includes two years of depreciation in line with straight line method over 35 years.
*This estimation do not include the total number of teachers and students per year.
2.If I were Pat Parisi I would choose the extension. The extension is important to improve the installations and to promote more academic plans for the students. However, the only way to go with the expansion