1 Is it more financially advantageous to sink the ship assum

1. Is it more financially advantageous to sink the ship (assume that it costs approximately $0.3 million to tow a ship out to sea and sink it) or to dismantle and recycle it? Show your calculations. 2. From a sustainability standpoint, what should be done with the decommissioned aircraft carrier? List some of the qualitative factors that should enter into this analysis. 3. As a taxpayer, which action would you prefer (sink or recycle)?

Solution

1. Cost of tow and sink = $0.3 million

Recycled aircraft can be sold for $35.7 million

Transportation cost for recycled aircraft = $36.9 million

So, if fhe company goes for recycling the loss will be $1.2million ($35.7 - $36.9)

If the company goes with tow and sink the loss will be $0.3million.

So, the company should go with tow and sink because the loss is less as compared with dismantle and recycle.

2. The decommisioned aircraft should be dismantle and recycled and for that Qualitative factors are as follows :-

a) it wil create about 5000 job opportunities in an year where employment rate has been recorded very low.

b) sunken ships released toxic in the ocean which harmed aquatic life and so it be saved by recycling.

3. As a taxpayer recycling method is suggested because higher the income higher will be the tax.