From the capital budget decision perspective, explain your opinions on the transformation listed with the following information (show calculation if any).
1) which transformations are reasonable for wealth maximization and why
2) which transformations are NOT reasonable for wealth maximization and why
The firm's profitability was supported by strong cost control, reduced rental expenses and government support in 2020. The firm remains committed towards pursuing its multi-brand strategy, expanding its partnership in China and seven new Asian markets. Sustainable transformations: . Invested in providing 440,000 pieces of personal protective equipment (masks, hand sanitisers and goggles) for team members Source products that treat animals in a humane and dignified manner, such as cage- a free eggs, plant-based options, and sustainable seafood MSC, ASC, and BAP certified Managing inventory better to minimize food waste Drink Without Waste initiative, Reverse Vending Machines for recycling plastic bottles Reduce plastic usage by 14% by reducing tray thickness of fresh foods Heartfelt Give Back programme, include donation of 1 million cash vouchers and 1 million meal vouchers to those in need through 250 charity partners Matching donation of up to HK$5 million that customers make through Yuu Give Back programme Surplus Bread Donation programme work with 90 charitable organizations to donate surplus bread The firm received government grants of USD$138.7 million in 2020, of which USD$68.5 million was used in employee retention and rent concessions. These subsidies were accounted for as other operating income. The firm's profitability was supported by strong cost control, reduced rental expenses and government support in 2020. The firm remains committed towards pursuing its multi-brand strategy, expanding its partnership in China and seven new Asian markets. Sustainable transformations: . Invested in providing 440,000 pieces of personal protective equipment (masks, hand sanitisers and goggles) for team members Source products that treat animals in a humane and dignified manner, such as cage- a free eggs, plant-based options, and sustainable seafood MSC, ASC, and BAP certified Managing inventory better to minimize food waste Drink Without Waste initiative, Reverse Vending Machines for recycling plastic bottles Reduce plastic usage by 14% by reducing tray thickness of fresh foods Heartfelt Give Back programme, include donation of 1 million cash vouchers and 1 million meal vouchers to those in need through 250 charity partners Matching donation of up to HK$5 million that customers make through Yuu Give Back programme Surplus Bread Donation programme work with 90 charitable organizations to donate surplus bread The firm received government grants of USD$138.7 million in 2020, of which USD$68.5 million was used in employee retention and rent concessions. These subsidies were accounted for as other operating income
