Product code: Accounting-AW86
Frito-Lay is considering an ambitious plan to take its Casa Grande, Arizona manufacturing plant “off the grid” through the installation of the latest energy saving and water saving technologies. The plant makes Lay’s potato chips, Doritos tortilla chips, Fritos corn chips, and Cheetos cheese flavored snacks. The plant uses energy in the two principal forms: natural gas from their local pipeline supplier and electricity from the grid. The energy is used to power production equipment, heat ovens, and to heat cooking oil. The company also uses water from the local water utility.
After the energy upgrades are installed, the company expects a 75% reduction in water use, an 80% reduction in natural gas consumption, and a 90% reduction in purchased electricity. Frito-Lay calls this plan the Net Zero Plan. The company’s historical and projected consumption of electricity and natural gas are shown in the attached spreadsheet.
For this assignment, you should carefully read the methodology for calculated greenhouse gases described in the “Corporate Greenhouse Gas Accounting: Carbon Footprint Analysis” case, and understand the difference between Scope 1 emissions and Scope 2 emissions. Then you should complete the following two tasks:
Frito Lay Student Template Excel Document
Task 1: Refer to the case exhibits and then fill in the data in the Excel spreadsheet to compute the GHG emissions for the Net Zero Plan assuming that the plan is implemented fully on January 1, 2008. In the final step (Step 6), you will compute the estimated total dollar savings for Frito Lay for the period 2008-2010.
Task 2: Write a one-paragraph capital spending justification for the project.
Will need to submit and Excel document and a word document.
The installation of latest techno equipment to save water and electricity at its Arizona Plant must be taken by the company management because of following reasons:-
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