Acc 201 Management Accounting

Topic: Substainbility and Management Accounting

PART B; PRACTICAL ANALYSIS Fiji Cleaning Limited wants to purchase waste disposal machines. These machines are aimed at recycling the waste in the area of Saweni in order to save space for waste dumping. There were no waste disposal plans in Saweni prior to this investment. Two alternatives were considered and the information regarding the machines is given below: Machine 1 Machine 2 Initial outlay $ 412 000 $ 1 022 000 Maintenance Costs per annum $ 50 000 $ 40 000 Energy Costs per annum $ 60 000 $ 50 000 Waste per annum 130 000 kilograms 1 000 kilograms Major Refurbishment $50 000 every 5 years $60 000 every 5 years CO, emissions per annum 3 000 GMS 5 000 GMS REQUIRED: Prepare a life cycle analysis over the next 20 years of both the machines and rank the alternatives using financial data and then using sustainability data