Topic > How "GreenWood Resources" tries to "do well by doing...

Before entering the Chinese market, GreenWood Resources Inc. came up with two projects, Luxi and Dongji, but could not decide which one. Therefore , this required conducting an analysis of their differences with respect to the following aspects: economic, social and environmental Economic dimension: According to Exhibit 7, the initial investment in existing plantation assets of Luxi and Dongji was 296,565 respectively. 711 RMB and 100,298,995 RMB. Obviously, regarding expenses, the Dongji project was much more attractive than the Luxi one. However, this could change the decisions in terms of profitability of each project considerably of Luxi plant were 632 RMB/mu while those of Donji were 255 RMB/mu. The variable cost of the Luxi project was 367+110=477 RMB/mu/year, while the cost of the Dongji project was 87+45=132 RMB/mu/year. Therefore, including the first year's expense, Luxi costs a total of 3,971 RMB/mu for 7 years, while Dongji costs 1,575 RMB/mu for 10 years. To calculate revenue, Luxi could earn 12.6×559=7,043.4 RMB/mu, while Dongji could earn 8.0×445=3,560 RMB/mu. So, the annual profit is equal to (Reve...