Question

Analyze CSR initiatives at Boxwood Company

Boxwood Company is a wholesale plant nursery that is considering implementing two CSR initiatives. Information about these initiatives is summarized as follows:

Replace old greenhouse fans with new energy-efficient fans:
Old greenhouse fan electricity consumption per unit	800	watts per hr.
New energy-efficient greenhouse fan electricity consumption per unit	500	watts per hr.
Number of units	80
Cost of each new unit	$750
Cost of replacing each old unit with new unit	$100
Operating hours per day	8
Operating days per year	180
Metered utility rate per kilowatt-hour (kwh)*	$0.10
*Note: A kilowatt-hour is equal to 1,000 watts per hour.

Replace gasoline-powered ATVs with electric-powered ATVs:
Number of ATVs	15
Cost of new electric-powered ATV per unit	$24,000
Fuel, repair, other cost savings per ATV per hour of use	$1.70
Operating hours per day per ATV	5
Operating days per year per ATV	270

a. Determine which performance perspectives each CSR initiative would best fit under on the balanced scorecard.

Both  CSR initiatives best fit under the internal processes performance perspective.

b. Determine the initial investment cost of each initiative.

Replacing old fans initiative: $

Replacing ATVs initiative: $

c. Determine the yearly cost savings of each initiative.

Replacing old fans initiative: $

Replacing ATVs initiative: $

d. Determine how many years it will take for each initiative to pay off its initial investment cost. Round your answers to two decimal places.

Replacing old fans initiative:

Replacing ATVs initiative:

Answer 1