Obtain from your library or your instructor a copy of the following article: Thomas L. Barton and John B. MacArthur, "The New Hue of Green for the Management Accountant," Strategic Finance (March 2011), pp. 36-41. The article provides a model for evaluating investments in energy-saving technologies that are both cost-effective and environmentally friendly. The authors use an actual example (Jiminy Peak Mountain Resort, www.jiminypeak.com) to illustrate the role that management accountants can play in the evaluation of sustainability-related investment proposals. (Useful information regarding the decision to invest in renewable energy products is available at the following websites:
www.eos-ventures.com;northernpower.kiosk-view.com/bolton-valley;and, articles.cnn.com/2009-02-27/tech/ski.wind
.turbine_1_jiminy-peak-mountain-resort-wind-turbine-zephyr?_s5PM:TECH).
Required
After reading the above-referenced article, answer the following questions:
1. According to the authors of the article, what was the managerial question (that is, decision) facing the management of Jiminy Peak Mountain Resort?
2. List the major relevant costs and cost savings (financial benefits) associated with the investment decision problem you identified in requirement 1.
3. Describe any nonfinancial benefits associated with the proposed investment.
4. According to the authors, what primary role can management accountants play in terms of evaluating capital investment proposals, similar to the one faced by the management of Jiminy Peak Mountain Resort?