The Solar Panels Business Case: A Management Accounting Instructional Resource

Abstract

This case instructs students through the preparation of a real-world business case with a sustainability theme. The case involves capital expenditure analysis and communication for installing solar panels on roofs of two warehouses in the Super-Savers Supermarkets supply chain. Installing solar panels would save electricity costs from the public grid and save carbon dioxide greenhouse gas emissions. There are insource and outsource scenarios. The business case has three parts: (1) use Excel (including goal seek) to prepare a financial model with a discounted cash flow method - to analyze incremental capital expenditures, costs, profit impacts, and carbon dioxide emission savings; (2) prepare a Word report that concisely communicates the financial model and business case, and (3) prepare a PowerPoint presentation that concisely communicates the financial model and business case. A practice financial modeling exercise is included. The case suits undergraduate and graduate management accounting courses.