Overview: These problems are meant to encourage deeper thinking on the material presented in the textbook. You are to answer ALL questions presented in the problem using the knowledge you have gained throughout the textbook. However, do not simply repeat what is in the book. Use that information and interpret it the best you can to apply it to the situation.

Requirements: Review the information and questions below. Provide a detailed 4-5 sentence explanation on how you would solve the problem or issue, based not only on the readings in the chapter, but your own personal experience and/or any additional outside research you perform. If quoting a source directly, make sure to cite that source, but do not rely solely on quoted materials.

Issue: Sandy Williams is the manager of General Companys cutting department, which employs 70 people. The cutting department desperately needs new equipment to increase productivity and thus avoid the layoff of 25 people. This department is one of four departments being considered for new equipment. The budget committee has announced that only one departments capital request will be approved this year. Williams works up the cost savings from the new machinery and contacts suppliers to learn the equipments estimated cost. Williams knows that General Company uses the payback method to evaluate capital projects. The estimated costs for the equipment are extremely high, particularly with all the safety shields recommended by the manufacturer. If one of these recommended safety features, electronic safety sensors not on the current equipment, were left off, the cost would be $200,000 less and the payback period would decrease by three years. If only minimum electronic safety sensors required by the union contract were included, the cost would be $70,000 less and the payback period would decrease by one year.

Questions to be Answered:

1) What are the ethical considerations Sandy Williams faces as she prepares the equipment proposal?