Question: Spartan Company is looking at starting a CSR program. They are looking at two different programs with the following information: Recycle Program Initial Cost of

Spartan Company is looking at starting a CSR program. They are looking at two different programs with the following information:

Recycle Program

Initial Cost of Program: $30,000

Variable Savings of Recycled Material $.40 per pound

Variable Cost of Recycled Material $.25 per pound

What are the net savings per pound?

How many pounds must be recycled to recoup the initial cost of the program?

Solar Panels

Initial Cost of Program $500,000

Life of Solar Panels 25 years

Annual Savings $27,500 per year

Variable Cost $2,500 per year

What are the net savings per year?

What are the total savings over 30 years?

What is the net profit (loss) from the solar panels?

How many years (round to one decimal) will it take to recoup the initial investment?

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