Final answer:
A nonprofit nursery school is evaluating the cost-effectiveness of drilling a new well, with this situation highlighting broader issues of global water crises and the importance of sustainable solutions for clean water and sanitation.
Step-by-step explanation:
The question pertains to a nonprofit nursery school considering drilling a new well to replace an unreliable water source. The school must evaluate the financial viability of this project, factoring in the initial cost, annual savings, and hurdle rate. The broader context raises significant issues surrounding the provision of clean water and sanitation, as well as the economic and health impacts of water crises affecting communities globally. Drilling a new well is a microcosm of these larger challenges, and must be considered alongside sustainable solutions like clean water delivery and adequate sewage treatment. Such infrastructure investments often yield significant returns through improved health, productivity, and reduced environmental impact, as indicated by the World Health Organization's statistics and the Flint, Michigan crisis. Moreover, alternative local water treatment methods such as home filtration, chlorination, and solar disinfection offer sustainable and cost-effective approaches over expensive bottled water.