Imagine you are a managerial accountant in charge of operations for an architectural firm whose work focuses on green building initiatives. To be consistent with the firm's principles, you propose three separate green initiatives to the board. The first proposal is to install low-water plumbing throughout the building. The second proposal is to install solar panels on the south-facing side of the building to reduce electric costs. The third proposal is to eliminate food and package waste from the break area by partnering with a sustainable food pantry. All three initiatives would include educational materials for clients, architects, and staff of the firm to underscore the firm's commitment to environmental matters. To convince the board of directors of the viability of these options, you prepare the following analysis. a-f. Fill in the missing spaces within the table above.
Which project would the board of directors choose if it values:
g. a fast payback period?
h. internal rate of return?
i. net present value?
j. initial cost outlay?
k. If you make your recommendation based on the profitability index, in which order would you recommend the projects be prioritized?

Question

Imagine you are a managerial accountant in charge of operations for an architectural firm whose work focuses on green building initiatives. To be consistent with the firm's principles, you propose three separate green initiatives to the board. The first proposal is to install low-water plumbing throughout the building. The second proposal is to install solar panels on the south-facing side of the building to reduce electric costs. The third proposal is to eliminate food and package waste from the break area by partnering with a sustainable food pantry. All three initiatives would include educational materials for clients, architects, and staff of the firm to underscore the firm's commitment to environmental matters. To convince the board of directors of the viability of these options, you prepare the following analysis.  a-f. Fill in the missing spaces within the table above.
Which project would the board of directors choose if it values:
g. a fast payback period?
h. internal rate of return?
i. net present value?
j. initial cost outlay?
k. If you make your recommendation based on the profitability index, in which order would you recommend the projects be prioritized?

Quizplus · Accepted Answer

The Answer of Imagine you are a managerial accountant in charge of operations for an architectural firm whose work focuses on green building initiatives. To be consistent with the firm's principles, you propose three separate green initiatives to the board. The first proposal is to install low-water plumbing throughout the building. The second proposal is to install solar panels on the south-facing side of the building to reduce electric costs. The third proposal is to eliminate food and package waste from the break area by partnering with a sustainable food pantry. All three initiatives would include educational materials for clients, architects, and staff of the firm to underscore the firm's commitment to environmental matters. To convince the board of directors of the viability of these options, you prepare the following analysis.  a-f. Fill in the missing spaces within the table above.
Which project would the board of directors choose if it values:
g. a fast payback period?
h. internal rate of return?
i. net present value?
j. initial cost outlay?
k. If you make your recommendation based on the profitability index, in which order would you recommend the projects be prioritized?

Imagine You Are a Managerial Accountant in Charge of Operations