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Apex Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of 2021
Apex Chemical Company currently operates three manufacturing plants in Colorado, Utah, and Arizona. Annual carbon emissions for these plants in the first quarter of 2021 are 150,000 metric tons per quarter (or 600,000 metric tons in 2021). Apex management is investigating improved manufacturing techniques that will reduce annual carbon emissions to below 579,000 metric tons so that the company can meet Environmental Protection Agency guidelines by 2022. Costs and benefits are as follows: (Click the icon to view the costs and benefits.) Requirement 1. If Apex reduces emissions by 1% each quarter, beginning with the second quarter of 2021 , will the company reach its goal of 579,000 metric tons by the end of 2022 ? (Round all intermediary calculations and the amounts you input in the cells to the nearest dollar.) Begin by calculating the quarterly emissions for each quarter through the end of 2022. Data table Total cost to reduce carbon emissions $19 per metric ton reduced in 2022 below 600,000 metric tons Fine in 2022 if EPA guidelines are not met $582,000 Will the company reach its goal of 579,000 metric tons by the end of 2022 ? reach its goal of 579,000 metric tons by the end of 2022 . Requirement 2. What would be the net financial cost or benefit of their plan? Ignore the time value of money. (Use parentheses or a minus sign to show a net benefit.) Net cost (benefit) of plan Requirement 3. What factors other than cost might weigh into Apex's decision to carry out this plan? What do you recommend Apex to do? Avoidance of the EPA fine be the company's sole motivation in carrying out this plan. Reducing carbon emissions plan at the end of 2022, and Apex may be able to Apex could choose to end this ; however, company management
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