Question
UPS is working with the New York State Energy Research and Development Authority to develop new technology that will allow UPS to convert its diesel-fuelled
UPS is working with the New York State Energy Research and Development Authority to develop new technology that will allow UPS to convert its diesel-fuelled delivery trucks to electric-fuelled. UPS hopes to have a working model of the converted delivery truck ready sometime in 2020. The plan is to convert 1,500 of the companys delivery vehicles in New York City, representing 66% of its fleet there, by the year 2022. UPS wants to convert its fleet to be all-electric because electric-fuelled trucks eliminate harmful emissions, noise, and dependence on fossil fuels. UPS drivers will use the electric trucks during the day and recharge them overnight.
Questions
- What is the difference between capitalizing an expenditure versus expensing that expenditure?
- What information would you need to be able to determine if UPS should capitalize or expense the cost of converting the trucks to be all-electric?
- Do you think UPS will capitalize or expense the cost of converting to electric vehicles?
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International Marketing And Export Management
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
8th Edition
1292016922, 978-1292016924
