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.

b. Determine the initial investment cost of each initiative.

c. Determine the yearly cost savings of each initiative.

d. Determine how many years it will take for each initiative to pay off its initial investment cost.

e. Assuming that the new fans have an estimated useful life of 25 years and that the ATVs have an estimated useful life of 8 years, determine which initiatives should be adopted.