This case is suitable for a graduate-level quantitative analysis, business and government, the environment and sustainable development and the global rate of the economy. Students should consider the trade-offs between the old coal continues to operate the plant and the purchase of emission allowances (IA) compared to upgrading to reduce emissions of wet or dry scrubbers. Reducing emissions creates the possibility of selling surplus plant advisors (who are likely to increase in the price). Choice of wet or dry scrubber requires consideration of the cost of construction time, variable costs, and SO2 removal efficiency. Ideally, the investment should pay for a long time, but the management believes that certain net investment can be justified. For this, however, a full analysis of the economic and environmental points of view is required. Reference table is available to accompany the case (UVA-S-QA-0726). "Hide
by Anton Ovchinnikov Source: Darden School of Business 9 pages. Publication Date: December 31, 2008. Prod. #: UV1474-PDF-ENG