Analyze a CSR capital investment proposal for Ganon Inc. Canon Inc. is evaluating a proposal to...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Analyze a CSR capital investment proposal for Ganon Inc. Canon Inc. is evaluating a proposal to replace its HID (high intensity discharge) lighting with LED (light emitting diode) lighting throughout its warehouse, LED lighting consumes less power and asts longer than HID lighting for similar performance. The following information was developed: HID watt hour consumption per fixture 500 watts per hr LED watt hour consumption per fixtures Number of foxtures 300 watts per hr 800 Lifetime investment cost (in present value terms) to replace each HID fixture with LED $300 Operating hours per day 10 Operating days per year) 300 Metered utility rate per kilowatt-hour (kwh) $0.12 "Note: A kilowatt hour is equal to 1,000 watts per hour. a. Determine the investment cost for replacing the 800 fixtures. b. Determine the annual utility cost savings from employing the new energy solution Should the proposal be accepted? Yes Evaluate the proposal using net present value, assuming a 15-year life and 8% minimum rate of return. (Click here to view Present Value of Ordinary Annuity) Analyze a CSR capital investment proposal for Ganon Inc. Canon Inc. is evaluating a proposal to replace its HID (high intensity discharge) lighting with LED (light emitting diode) lighting throughout its warehouse, LED lighting consumes less power and asts longer than HID lighting for similar performance. The following information was developed: HID watt hour consumption per fixture 500 watts per hr LED watt hour consumption per fixtures Number of foxtures 300 watts per hr 800 Lifetime investment cost (in present value terms) to replace each HID fixture with LED $300 Operating hours per day 10 Operating days per year) 300 Metered utility rate per kilowatt-hour (kwh) $0.12 "Note: A kilowatt hour is equal to 1,000 watts per hour. a. Determine the investment cost for replacing the 800 fixtures. b. Determine the annual utility cost savings from employing the new energy solution Should the proposal be accepted? Yes Evaluate the proposal using net present value, assuming a 15-year life and 8% minimum rate of return. (Click here to view Present Value of Ordinary Annuity)
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
"If nominal GDP rises, velocity must rise." Is this statement true, false, or uncertain? Explain your answer.
-
Assume you are about to meet and negotiate with an individual from a low-context culture. Do you think the person will know a great deal about you before you meet with him or her? Explain.
-
Show that the rank of a matrix equals the rank of its transpose.
-
Presented below are selected financial data from the The Coca-Cola Company 2015 annual report. Using the ratio definitions from Exhibit 4.6, calculate the following ratios: receivable turnover,...
-
Uncle Elmo needs to replace the family privy. The local sanitary engineering firm has submitted two alternative structural proposals with respective cost estimates as shown. Which construction should...
-
This discussion question seeks to engage students with a deep question about American law. If state law allows for slavery, likely every student would say that it was an unjust law. Intuitively, they...
-
FINC 423 Advanced Corporate Finance Fall 2023 2022 Book Value Balance Sheet for Jordan Inc Cash Accounts Recievable Inventories Current Assets Fixed Assets Total Assets Notes Payable Accounts...
-
Cinemark Holdings, Incorporated, operates movies and food concession counters throughout the United States. Its income statement for the quarter ended June 30, 2019, reported the following (accounts...
-
Jake's Roof Repair has provided the following data concerning its costs: Fixed cost per Month Cost per Repair Hour Wages and salaries $ 2 0 , 8 0 0 $ 1 5 . 0 0 Parts and supplies $ 7 . 7 0 Equipment...
-
Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. April 1 Sold merchandise for...
-
Tech Solutions is a consulting firm that uses a job - order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm s...
-
The following information is available for Fuller Manufacturing Company for the month ending January 31: Cost of direct materials used in production $147,300 Direct labor 176,800 Work in process...
-
Due to coronavirus pandemic auto sales decreased significantly. One of the automakers decided to sell cars cheaper or even at a loss than to shut down. When it is said selling cars at a loss, is it...
-
The landing gear of an aircraft with: mass of 2000 kg the spring-mass-damper system Consider that the runway surface is y(t) = 0.2 cos 157.08t stiffness of the spring is 5 x 105 N/m. What is the...
-
(a) Prove that \(\sqrt{3}\) is irrational. (b) Prove that there are no rationals \(r, s\) such that \(\sqrt{3}=r+s \sqrt{2}\).
-
Prove that if \(n\) is any positive integer, then \(\sqrt{n}+\sqrt{2}\) is irrational.
-
Critic Ivor Smallbrain is watching the horror movie Salamanders on a Desert Island. In the film, there are 30 salamanders living on a desert island: 15 are red, 7 blue and 8 green. When two of a...
Study smarter with the SolutionInn App