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Section Three: (Sustainability) Assume that your growing interest in the surrounding environment and your strong belief in taking advantage of the available natural resources have
Section Three: (Sustainability) Assume that your growing interest in the surrounding environment and your strong belief in taking advantage of the available natural resources have motivated you to initiate a talk with the production engineer of Haya on how to set up a project that serves sustainability. You have noticed that the electricity bill had reached $200,000 with the presence of unutilized large areas on the top of the the factory roofs that can be used for a solar system to reduce the electricity bill. After contacting the "contractor" company that installs the solar system services, and after studying the company's financial position, we learned the following: - Electricity costs are expected to increase in the coming years by up to 5% annually. - The space necessary for installing the solar system is available and can be utilized for that solar project without affecting the current production processes of the factory. - The payback period for this project is 3 years and the costs of the project reach $600,000 and are payable over two years. Required: (a) Prepare a summarized management report advising on the adoption of this solar system project. The report should highlight the anticipated financial and non-financial benefits. (15%)
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