Analyze CSR initiatives at Boxwood Company

Boxwood Company is a wholesale plant nursery that is considering implementing two CSR initiatives. Information about these initiatives is summarized as follows:

Replace old greenhouse fans with new energy-efficient fans:
Old greenhouse fan electricity consumption per unit	800	watts per hr.
New energy-efficient greenhouse fan electricity consumption per unit	500	watts per hr.
Number of units	80
Cost of each new unit	$750
Cost of replacing each old unit with new unit	$100
Operating hours per day	8
Operating days per year	180
Metered utility rate per kilowatt-hour (kwh)*	$0.10
*Note: A kilowatt-hour is equal to 1,000 watts per hour.

Replace gasoline-powered ATVs with electric-powered ATVs:
Number of ATVs	15
Cost of new electric-powered ATV per unit	$24,000
Fuel, repair, other cost savings per ATV per hour of use	$1.70
Operating hours per day per ATV	5
Operating days per year per ATV	270

a. Determine the initial investment cost of each initiative.

Replacing old fans initiative: $?

Replacing ATVs initiative: $?

b. Determine the yearly cost savings of each initiative.

Replacing old fans initiative: $?

Replacing ATVs initiative: $?

c. Determine how many years it will take for each initiative to pay off its initial investment cost. Round your answers to two decimal places.

Replacing old fans initiative: ?

Replacing ATVs initiative: ?