Question
Sounders Management Company owns and provides management services for several shopping centers. After 5 years with the company, James Heller was recently promoted to the
Sounders Management Company owns and provides management services for several shopping centers. After 5 years with the company, James Heller was recently promoted to the position of manager of Brunswick, an 18-store mall on the outskirts of a downtown area. When he accepted the assignment, James was told that he would hold the position for only a couple of years because Brunswick would likely be torn down to make way for a new sports stadium. James was also told that if he did well in his assignment, he could be in line for heading one of the companys new 200-store operations that were currently in the planning store. While reviewing Brunswicks financial records for the past few years, James observed that last years oil consumption was up by 8%, even though the number of heating degree days was down by 4%. Somewhat curious, James uncovered the following information: - Brunswick is heated by forced air oil heat. The furnace is 5 years old and has been well maintained - Fuel oii is kept in four 5,000-gallon underground oil-tanks. The oil tanks were installed 25 years ago. - Replacing the tanks should cost $80,000. if pollution was found, cleanup costs could go as high as $2,000,000, depend on how much oil had leaked into the ground and how far it had spread Brunswick - Replacing the tanks should add more congestion to Brunswick s parking situation Required: What should James do? explain
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started