Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Railway Development Co (RDC) was considering two options for a new railway line connecting two towns in the country of Zeeland. Route A involved cutting

Railway Development Co (RDC) was considering two options for a new railway line connecting two towns in the country of Zeeland. Route A involved cutting a channel through an area designated as being of special scientific importance because it was one of a very few suitable feeding grounds for a colony of endangered birds. The birds were considered to be an important part of the local environment with some potential influences on local ecosystems. The alternative was Route B which would involve the compulsory purchase and destruction of Eddie Krul's farm. Mr Krul was a vocal opponent of the Route B plan. He said that he had a right to stay on the land which had been owned by his family for four generations and which he had developed into a profitable farm. The farm employed a number of local people whose jobs would be lost if Route B went through the house and land. Mr Kurl threatened legal action against RDC if Route B was chosen. An independent legal authority has determined that the compulsory purchase price of Mr Kurl's farm would be $1 million if Route B was chosen. RDC considered this a material cost, over and above other land costs, because the projected net present value (NPV) of cash flows over a ten-year period would be $5 million if Route A were chosen. The NPV would be reduced to $4 million if Route B were chosen. The local government authority had given both routes provisional planning permission and offered no opinion of which it preferred. It supported infrastructure projects such as the new railway line, believing that either route would attract new income and prosperity to the region. It took the view that as an experienced railway builder, RDC would know best which to choose and how to evaluate the two options. Because it was keen to attract the investment, it left the decision entirely to RDC. RDC selected Route A as the route to build the new line. A local environmental group, 'Save the Birds', was outraged at the decision to choose Route A. It criticized RDC and also the local authority for ignoring the sustainability implications of the decision. It accused the company of profiting at the expense of the environment and threatened to use 'direct action' to disrupt the building of the line through the birds' feeding ground if Route A went ahead. 

A. . Use Tucker's five questions model to assess the decision to choose Route A

B. Discuss the importance to RDC of recognizing all of the stakeholders in a decision such as choosing between route A and route B

C. Explain what a stakeholder claim is and critically asses the claims of Eddie Krul, the local government authority and the coloby of endangered birds.     

 

Step by Step Solution

3.47 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER 1 Climate assurance bunch The gathering battling for the preservation of the earth rich zone would be influenced as they would not have the opt... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics

Authors: Douglas Bernheim, Michael Whinston

2nd edition

73375853, 978-0073375854

More Books

Students also viewed these Accounting questions

Question

What functions might this behavior be serving?

Answered: 1 week ago