Question
Spartan Company is looking at starting a CSR program. They are looking at two different programs with the following information: Recycle Program Initial Cost of
Spartan Company is looking at starting a CSR program. They are looking at two different programs with the following information:
Recycle Program
Initial Cost of Program: $30,000
Variable Savings of Recycled Material $.40 per pound
Variable Cost of Recycled Material $.25 per pound
| What are the net savings per pound? |
|
| How many pounds must be recycled to recoup the initial cost of the program? |
|
Solar Panels
Initial Cost of Program $500,000
Life of Solar Panels 25 years
Annual Savings $27,500 per year
Variable Cost $2,500 per year
| What are the net savings per year? |
|
| What are the total savings over 30 years? |
|
| What is the net profit (loss) from the solar panels? |
|
| How many years (round to one decimal) will it take to recoup the initial investment? |
|
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
10th edition
978-0077861759
