A firm is considering replacing its existing line of running shoes with a more sustainable brand. Current sales are $10,661 and costs are $9,762. The new line is expected to generate sales of $10,588 and costs of $8,505. The impact to future communities is expected to reduce pollution by $1,159 with a social distance of 0.32. What is the SNPV of this change?

Question

BlackTom AI · Accepted Answer

To evaluate the SNPV of switching to a more sustainable shoe line, start by examining the change in operating cash flows without social impact. The firm’s current net cash flow is Sales minus Costs: 10661 - 9762 = 899. The new line’s net cash flow is 10588 - 8505 = 2083. The incremental operating cash flow from the change is 2083 - 899 = 1184. Next, incorporate the social impact. The project is expected to reduce pollution by 1159 units, and this social benefit is weighted by the social distance factor of 0.32, giving a social value of 1159 × 0.32 = 370.88. Finally, add the operating incremental cash flow to the weighted social benefit to obtain the SNPV: 1184 + 370.88 = 1554.88. In summary, the SNPV combines both the financial improvement (1184) and the scaled social benefit (370.88) to yield a total SNPV of 1554.88.

类似问题

Is the following statement true or false? In the products of methylation-hydrolysis, every -OH group corresponds to the position of a glycosidic bond in the starting polysaccharide.

Which of the follwoing structures represents amylopectin?

Which of the following is true about an aldopentose?I. It is a monosaccharide.II. It contains a CHO groupIII. It is a disaccharide.IV. It is an oligosaccharide.

For stock A, we have 𝛽 𝑖 = 0.70. Suppose the expected market risk premium next year is 9% and the risk-free rate is 3%. What is the expected return of this stock based on the CAPM? (Please answer in % and round to 2 decimal places. If the answer is 8.057%, then in the box, write 8.06)

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单