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Major Communication Company - Resource Usefrom CSR Report
Usage Unit Cost
Electricity 1,521,000,000 kWh $ 333,099
Water 607,665,870 gallons $ 911,499
Waste 11,056,169 pounds $ 663,370
GHG 55,811 pounds $ 613,921

Your boss believes that energy prices have gotten as high asthey are going to go. He thinks that the carbon market is filledwith extra carbon credits and that prices will probably drop beforefuture regulation. He also doesn't see waste as something materialenough to pay attention to. He assumes that electricity prices willstay the same. Water prices will likely increase 33% because ofdrought. He thinks GHG emissions and costs will actually decreaseby 50% because of the glut of credits on the market, and he assumeswaste will also be the same.

Question 1: Given the information below, andthe assumptions above, calculate what the assumed total annualcosts will be for this company's resource use. Round to the nearestwhole number.

a.

$ 3,356,322

b.

$ 2,515,723

c.

$ 1,334,057

d.

$ 998,956

Your boss doesn't put a lot of weight into climate change andits affect on business. However, you think that it'd be wise to dosome modeling because you think that with the drought inCalifornia, economic slowdown in China and increased attention toenvironmentalism because of the Paris UN Summit on Climate Change,that you think there will be higher costs related to resource usefor the company.

Model for your boss what a dramatic increase could be next yearif GHG credits were double what they are today, and if water isforty percent higher. Assume that electricity will actually go down20% with the competition that solar and wind are both creatingwithin the market, and the waste just going up a measly 1% becauseof inflation.

Question2 : Given the information below, andthe assumptions above, calculate what the assumed total annualcosts will be for this company's resource use. Round to the nearestwhole number.

a.$3,440,424

b. $4,983,424

C.$2,998,554

D. $2,946,216

Your boss understands that the company needs to start beingproactive around climate and the effects it will have on business.Therefore, she has moved to a purchasing agreement with the utilityto buy 100% renewable energy. This accounts for 75% of thecompany's total GHG emissions, so emissions should go down by thatsame amount. But the kicker is that electricity will go up 10%. Shealso sees the need for massive water conservation. The governmenthas already begun rationing water to farms and homes, therefore sheinstitutes a conservation policy that should save close to 20% onwater next year. She also is shifting to a new vendor that handlesall composting and recycling, but this will increase costs by about5%.

Question3 : Given the information below, andthe assumptions above, calculate what the assumed total annualcosts will be for this company's resource use. Round to the nearestwhole number.

a. $1,945,225

b. $2,455,328

c. $1,945,627

d. $945,233

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Collen Von
Collen VonLv2
29 Sep 2019

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