2. Accounting
3. chad pty ltd cpl is preparing to design and implement...

# Question: chad pty ltd cpl is preparing to design and implement...

###### Question details

Chad Pty Ltd (CPL) is preparing to design and implement sustainability systems and processes. You find (as the environmental director) that energy is a key resource for business operations; first for heating water and second for operational and security lighting. Management of these key resources for business operations can save the company money. Therefore the first step is to measure the water flow at the premises and the second step is to calculate the cost of heating water for 320 days each year. The second key resource for business operations is energy for operational and security lighting for 365 days each year. You report directly to William South, the CFO. The daily rinsing process for fruit and vegetables requires the tap to run for 55 minutes per day and use 11 litres of water flow per minute. The water is heated to 65oC. The table below provides the number of kWh required to heat one kilolitre of water to various temperatures

Hot Water Temperature                            kWh required make one kilolitre of hot water

45 oC                                                           56kwh

55 oC                                                           65kwh

65 oC                                                           84kwh

75 oC                                                           103kwh

CPL electricity usage for lighting for operational and security purposes is set out below.

Number of lights:   12 lights

Light Wattage per light: (Fluorescent lights)     50 watts or 0.050 kWh

Light Wattage: Electricity cost per kW Light Wattage:    $0.25 /kWh: Hours of lighting use per day: 18 hours Required: Please note: all your answers should be to two decimal points (cents) e) Calculate the annual lighting cost for the Arrow Pty Ltd using the following formula __ lights x ____ kW x _____$/kWh x ____ hrs x _____ days = $______/yr (3 marks) f) How much can a business save in electricity costs by using energy-efficient lights if the business replaces the 50 watt fluorescent tubes with 5 watt LED bulbs that could be inserted into 20 light fittings? Each light fitting costs$7.50 to supply and install.
(3 marks).
g) Provide a short Formal Report describing your recommendation(s) to the managing director about what energy reduction activities to implement. Use your answers in a) to f) to support your recommendation to make the greatest combined energy costs savings. Include any capital costs. Also discuss any non-financial considerations that should be considered, and any potential problems that could arise from the changes.
(8 marks)