ACCESS IN BB-ACC202
null Edition
ISBN: 9780135375587
Author: Pearson
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 8, Problem 8.17AE
SUSTAINABILITY
ES-17A Sustainability and short-term decision making (Learning Objective 1)
Over the past several years, decommissioned U.S. warships have been turned into artificial reefs in the ocean by towing them out to sea and sinking them. The thinking was that sinking the ship would conveniently dispose of it while providing an artificial reef environment for aquatic life. In reality, some of the sunken ships have released toxins into the ocean and have been costly to decontaminate. Now the U.S. government is taking bids to instead dismantle and recycle ships that have recently been decommissioned (but have not been sunk yet.)
Assume that a recently decommissioned aircraft carrier, the USS Stingray, is estimated to contain approximately 40 tons of recyclable materials able to be sold for approximately $41.5 million. The low bid for dismantling and transporting the ship materials to appropriate facilities is $43.1 million. Recycling and dismantling the ship would create about 500 jobs for about a year in the Rust Belt. This geographic area has been experiencing record-high
- 1. Is it more financially advantageous to sink the ship (assume that it costs approximately $0.7 million to tow a ship out to sea and sink it) or to dismantle and recycle it? Show your calculations.
- 2. From a sustainability standpoint, what should be done with the decommissioned aircraft carrier? List some of the qualitative factors that should enter into this analysis.
- 3. As a taxpayer, which action would you prefer (sink or recycle)? Defend your answer.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
I need help with FIN-320 module 7 assignement. The scenario is listed below:
Financial Option 1: Purchase a $10 Million BuildingRationale for investment: The business is considering environmental, social, and corporate governance(ESG) factors as part of its investment into a new building for its headquarters. The building itself will bea Leadership in Energy and Environmental Design (LEED)-certified building, but the new site beingconsidered currently houses a large, inactive gas station that sold both gasoline and diesel fuel. The newsite also has a sizable repair facility left over that was used for deliveries and tractor-trailer trucks formore than 50 years. While some restoration was performed on the site prior to the new building’sconstruction, the previous owner ran out of funds before they were ever able to bring the site up toLEED standards. Four large fuel tanks remain on the site, and they will also need to be addressed perLEED standards.Assumptions to consider: $10 million…
Apply your critical-thinking ability to the knowledge you’ve gained. These cases will provide you an opportunity todevelop your research, analysis, judgment, and communication skills. You also will work with other students, integratewhat you’ve learned, apply it in real-world situations, and consider its global and ethical ramifications. This practice willbroaden your knowledge and further develop your decision-making abilities.The terms depreciation, depletion, and amortization all refer to the process of allocating the cost of an asset to theperiods the asset is used.Required:Discuss the differences between depreciation, depletion, and amortization as the terms are used in accounting forproperty, plant, and equipment and intangible assets.
Moving to Green Computing Your organization is a leader in the development of renewable energy sources based on enhanced geothermal systems and is viewed as a champion in the fight to reduce carbon emissions. The organization employs over 25,000 people worldwide and operates three global data centers, one each in the United States, Europe, and Southeast Asia. The CEO has asked all her C level executives for input on a proposed strategy to become a leader in green computing.
Critical Thinking Questions
Identify two additional tactics the organization might take to accelerate its move toward green computing?
Identify the pros and cons or any issues associated with your proposed tactics.
Chapter 8 Solutions
ACCESS IN BB-ACC202
Ch. 8 - Prob. 1QCCh. 8 - (Learning Objective 1) Keys to making short-term...Ch. 8 - (Learning Objective 2) Which is true of...Ch. 8 - (Learning Objective 3) Which of the following...Ch. 8 - Prob. 5QCCh. 8 - Prob. 6QCCh. 8 - (Learning Objective 4) A segment margin is the a....Ch. 8 - (Learning Objective 5) When resources are...Ch. 8 - (Learning Objective 6) Which of the following is...Ch. 8 - Prob. 10QC
Ch. 8 - Determine relevance of information (Learning...Ch. 8 - Prob. 8.2SECh. 8 - Prob. 8.3SECh. 8 - Prob. 8.4SECh. 8 - Prob. 8.5SECh. 8 - Prob. 8.6SECh. 8 - Prob. 8.7SECh. 8 - Prob. 8.8SECh. 8 - Product mix decision: Unlimited demand (Learning...Ch. 8 - Prob. 8.10SECh. 8 - Outsourcing production decision (Learning...Ch. 8 - Relevant information for outsourcing delivery...Ch. 8 - Prob. 8.13SECh. 8 - Prob. 8.14SECh. 8 - Prob. 8.15SECh. 8 - Determine relevant and irrelevant information...Ch. 8 - SUSTAINABILITY ES-17A Sustainability and...Ch. 8 - Prob. 8.18AECh. 8 - Prob. 8.19AECh. 8 - Analyze special order decision (Learning Objective...Ch. 8 - Prob. 8.21AECh. 8 - Prob. 8.22AECh. 8 - Prob. 8.23AECh. 8 - Discontinuing a product line (Learning Objective...Ch. 8 - Prob. 8.25AECh. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.27AECh. 8 - Make-or-buy product component (Learning Objective...Ch. 8 - Prob. 8.29AECh. 8 - Prob. 8.30AECh. 8 - Prob. 8.31AECh. 8 - Prob. 8.32BECh. 8 - Prob. 8.33BECh. 8 - Prob. 8.34BECh. 8 - Prob. 8.35BECh. 8 - Prob. 8.36BECh. 8 - Prob. 8.37BECh. 8 - Prob. 8.38BECh. 8 - Prob. 8.39BECh. 8 - Prob. 8.40BECh. 8 - Identify constraint, then determine product mix...Ch. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.43BECh. 8 - Prob. 8.44BECh. 8 - Prob. 8.45BECh. 8 - Determine maximum outsourcing price (Learning...Ch. 8 - Prob. 8.47BECh. 8 - Prob. 8.48APCh. 8 - Special order decision and considerations...Ch. 8 - Prepare and use contribution margin statements for...Ch. 8 - Product mix decision under constraint (Learning...Ch. 8 - Outsourcing decision given alternative use of...Ch. 8 - Prob. 8.53APCh. 8 - Prob. 8.54BPCh. 8 - Prob. 8.55BPCh. 8 - Prepare and use contribution margin statements for...Ch. 8 - Prob. 8.57BPCh. 8 - Prob. 8.58BPCh. 8 - Prob. 8.59BPCh. 8 - Decide whether to discontinue a department...Ch. 8 - Prob. 8.61ACTCh. 8 - Outsourcing Decision at a Real Company Go to the...Ch. 8 - Prob. 8.63ACTCh. 8 - Prob. 8.64ACT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Analyze CSR initiatives at Green Manufacturing Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The companys operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities: The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect. A. Identify which CSR activities Green Manufacturing should implement. B. For each CSR activity you recommend, identify an appropriate related performance metric.arrow_forwardTask 2B: Critically evaluate the hey benefits and limitations of each of the differing investment appraisal techniques, supporting this response with relevant academic research as to whether each of the differing techniques is applied in practice within a real-life business context. Unilever PLC planning to meet the environmental protection strategy including an introduction of the UN approved 120-litre plastic open-top drums, known as the ‘Blue-drum’. It was highlighted in 2022 AGM that Comfort’ one of their products delivered high growth in Latin America, South Asia, and Turkey, but declined in Europe where consumers reduced their spending in the category. Hence, the company is trying to reduce cost in producing plastic containers used for this washing detergent product, ‘Comfort’. Assume that cost of manufacturing a ten-pack of Blue-drum includes direct material at C19, direct labour is 111 and variable overheads at f3. The depreciation of a special equipment is C7 with no…arrow_forwardClassify costs and make a quality-initiative decision (Learning Objective 5) Sinclair Corp. manufactures radiation-shielding glass panels . Suppose Sinclair is consider-ing spending the following amounts on a new TOM program :Strength-testing one item from each batch of panels ......................... . Training employees in TOM ................................................................. . Training suppliers in TOM .................................................................... . Identifying preferred suppliers that commit to on-time delivery ofperfect quality materials ................................................................... .Sinclair expects the new program to save costs through the following:Avoid lost profits from lost sales due to disappointed customers ....... Avoid rework and spoilage ................................................................. .. Avoid inspection of raw materials ........................................................ . Avoid…arrow_forward
- Integrative Problem Samantha Sampson retired a few years ago at the age of 55. Because she is bored with retirement and still relatively young, Samantha has considered starting a business of her own. However, she doesn’t know anything about business. As a result, Sam has hired the consulting firm for which you work to give her a brief tutorial on business and finance. To begin her lesson, Ms. Sampson has asked you to answer the following questions: What does it mean to maximize value? What is sustainability, and how is this concept related to finance?arrow_forwardQUESTION 30 WKU is doing the following two research projects: X: Developing identity theft prevention software. The software will be sold in the market. Y: Cost reimbursement contract with the US Treasury Department. WKU performs a financial fraud detection research and it will be reimbursed 250% of the reported costs incurred in the project. For each project, WKU incurred both direct and indirect costs. WKU incurred a total of $1,000,000 indirect costs. Indirect costs are allocated using a base chosen by WKU. The following information is given: Project Direct costs Computer time in hours (CTH) Pages of all articles read (PAR) Lab experimental hours (LEH) Number of assistants used (NAU) X $1,000,000 5,000 65,000 1,000 300 Y $2,500,000 5,000 35,000 4,000 500 Which of the following allocation bases is the best for the benefit of WKU? A. CTH B. LEH C. PAR…arrow_forwardFAO-Funded Aquaponics Project Launched In BarbadosBarbados GIS – The United Nations Food and Agriculture Organization (FAO) hascollaborated with the Ministry of Maritime Affairs and the Blue Economy, and local businessAdams Aquafarms, on a project to train persons in aquaponics.Aquaponics is a sustainable way of integrating land-based fish farming with plant production.Both are placed in a tank, and the set up allows for them to coexist, with the waste producedby the fish fertilizing the plants, while the plants purify the water for the fish.The training, funded by the FAO, will take place at a demonstration facility, located atAdams Aquafarms, Hopewell, St. Thomas. The FAO is currently targeting 30 entrepreneursand 10 teachers.Minister of Maritime Affairs and the Blue Economy, Kirk Humphrey, believes the projectwill be “transformative”, as it has the potential to empower Barbadians.“In aquaponics, you have the opportunity to have, at the same time, multiple sources ofincome [because]…arrow_forward
- Question 02 Reneta group is evaluating a new automatic surveillance system to replace their current security system in Savar. You are currently working as Finance manager in the Group, and Reneta has asked you to conduct a sensitivity analysis. Currently, Reneta group is renting a premise of 50,000 Square feet in Savar, and Reneta Fabrics is planning to rent another 10,000 Square feet from 2023. The new automatic surveillance system will cost $450,000. The cost will be depreciated straight-line to zero over the system’s four-year expected life. Reneta Group expects to have a total output of 50,000 units of cloths at USD 3 per cloth from Reneta Fabrics. Reneta thinks that the new automatic surveillance system will increase EBIT by $125,000 per year. The system is expected to be worth $250,000 at the end of four years. The tax rate is 34 percent. Calculate the NPV of this project if the discount rate is 17%. Conduct sensitivity analysis with a discount rate of 12%. Show detailed…arrow_forwardQuestion 1: Project Charter Document This project proposal seeks to solve the problem of lack of school building infrastructures in Ipusikilo primary school which is an institution of the Education Board of Zambia in the Ministry of General Education located in Mufulira in the Copperbelt Province. Four critical issues relating to primary school infrastructure, as evidenced through field surveys conducted by the Ministry of General Education (MOGE) and development partners have been identified as: Major backlog of infrastructure provision and a shortage of permanent classrooms, Existing school infrastructure is in poor condition, due to lack of investment, Poor construction standards and inadequate maintenance. To that end, the literacy international Project Team will work with the Ipusukilo Primary School Board, teachers and the community to design, construct and sustain a four classrooms to support the education process of the Mufulira district 360 students. The goal of the…arrow_forwardIntegrative Case 4 Enviro Plastics Company Since its inception, Enviro Plastics Company has been revolutionizing plastic and trying to do its part to save the environment. Enviro’s founder, Marion Cosby, developed a biodegradable plastic that her company is marketing to manufacturing companies throughout the southeastern United States. After operating as a private company for six years, Enviro went public in 2015 and is listed on the Nasdaq stock exchange. As the chief financial officer of a young company with lots of investment opportunities, Enviro’s CFO closely monitors the firm’s cost of capital. The CFO keeps tabs on each of the individual costs of Enviro’s three main financing sources: long-term debt, preferred stock, and common stock. The target capital structure for Enviro is given by the weights in the following table: At the present time, Enviro can raise debt by selling 20-year bonds with a $1,000 par value and a 10.5% annual coupon interest rate. Enviro’s corporate tax rate…arrow_forward
- 47. PAGOD NAKO camp is known for its expertise in wilderness training and adventures. The camp carries P100 million liability insurance, and parents of campers must sign liability waivers. All counselors are certified in wilderness first aid and activity instruction and are required to undergo periodic refresher training. All campers receive training and must meet stringent skill and safety requirements before embarking on a wilderness trip. Which two response options best summarize the camp’s risk response strategy? I. Avoid II. Transfer III. Mitigate IV. Tolerate/Accept Group of answer choices II and IV I and II None of the choices III and IV II and IIIarrow_forwardC7-73 Calculate breakeven and margin of safety after hotel renovation (Learning Objective 2) Cost-Volume-Profit Analysis 437 This case is a continuation of the Caesars Entertainment Corporation serial case that began in Chapter 1. Refer to the introductory story in chapter 1 (see page 43) for additional background. (The components of the Caesars serial case can be completed in any order.) Caesars Palace® Las Vegas made headlines when it undertook a $75 million renovation. In mid-September 2015, the hotel closed its then-named Roman Tower, which was last updated in 2001, and started a major renovation of the 567 rooms housed in that tower . On January 1, 2016, the newly renamed Julius Tower reopened, replacing the Roman Tower. In addition to renovating the existing rooms and suites in the former Roman Tower, 20 guest rooms were added to the Roman Tower. With the renovation completed, Caesars expects the Julius Tower room rate to average around $149 per night. This increase, a $25 or 20…arrow_forwardPAGOD NAKO camp is known for its expertise in wilderness training and adventures. The camp carries P100 million liability insurance, and parents of campers must sign liability waivers. All counselors are certified in wilderness first aid and activity instruction and are required to undergo periodic refresher training. All campers receive training and must meet stringent skill and safety requirements before embarking on a wilderness trip. Which two response options best summarize the camp’s risk response strategy? I. Avoid II. Transfer III. Mitigate IV. Tolerate/Accept CHOICES: A) III and IV B) II and III C) II and IV D) I and II E) None of the choicesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Understanding Systems Development Life Cycle; Author: GreggU;https://www.youtube.com/watch?v=shNOYFlmBOU;License: Standard Youtube License