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kupik [55]
3 years ago
11

You are the General Manager of a regional chemical company. In the course of producing your bulk chemicals, large amount of part

icles and smoke are emitted through your plant's smokestack. The level of pollutants is well below current EPA regulations, and you are violating no laws, but neighborhood groups are complaining about minor health problems caused by the smoke. After investigating numerous alternatives, you find the most effective solution would be to install a "scubber" system which will remove 90% of the pollutants and ash. The cost of the "scrubber" system is $10 milion and your company's annual profits are $2 million. Who are you company's stakholders to consider in this scenario and would you install it?
Business
1 answer:
34kurt3 years ago
5 0

Answer:

The answer is explained below

Explanation:

The companies board of directors as well as you would consider whether it is best to install the scubber system. When determining whether to install the scubber system both short and long term consequences are to be considered. If presently, the level of pollution is legal, you need to consider if in the future it would be legal? if the installation of the scubber system would affect the public relations of the company. After considering all this, it would be better to install because the pollution can lead to death, and the neighborhood can sue the company. Also the EPA regulations can be regulated.  

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g100num [7]

Answer:

a. Net Present Value of Cool:

= Present value of cash inflows - Initial investment

= ∑(Cash flows * Present value factor) - Initial investment

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Net Present value of Hot.

Cashflows are constant so this is an annuity:

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= 42,000 * 2.402 - 97,000

= 100,884 - 97,000

= $3,884

b. Profitability index for Cool:

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Profitability index for Hot:

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= 1.04

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4 0
3 years ago
g A firm encountering economies of scale over some range of output will have a Multiple Choice rising long-run average cost curv
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Answer:

Falling long-run average cost curve.

Explanation:

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Also, The long-run average cost (LRAC) curve represents the firm's lowest cost per unit at each level of production, assuming the factors of production chosen are variable and thus, being the optimal factor of production mix.

Hence,The falling long-run average cost (LRAC) is in essence an advantageous or efficiencies in cost or production that results in increased level of output for a firm.

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Answer:

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Explanation:

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4 years ago
How does recycling help bridge the gap between renewable and nonrenewable resources
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