Question:

What is your opinion of corporate social responsibility (CSR)? Look at your answers to #6. (your conclusion should have been positive). If the project were to show a negative net income, do you think they company should still invest the money? Does the amount of loss change your answer? How much of a loss would be acceptable to start the CSR project?

Hartz Company is looking to start a CSR program involving installing solar panels on the roof of the building. Information on the investment is as follows: Initial Cost of Project: Estimated Savings Per Year Variable Cost Per Year Estimated Life of Project $150,000 20,000 5,000 20 years Required What are the net savings per year? What are the net savings over the life of the project? What is the estimated payback time in years? (round to two decimals) = Questions What are the net savings per year? What are the net savings over the life of the project? What is the estimated payback time? Answers 20,000 5,000 = 15,000 15,000 x 20 = 300,000 = 150,000/15,000 = 10 =