The management council must make an immediate decision that will affect the profitability of this company for the next 25 years. In response to the Clean Air Act, instead of purchasing and installing new scrubbers, I recommend that the Southern Company elect to buy allowances to meet this new standard for the remaining years to come. This strategy will not only minimize costs, it'll allow Southern the needed capital to invest in other projects in the future.

In my analysis, I looked at the possibility of purchasing and installing scrubbers as pollution control equipment, which would create a 90% reduction in your generated sulfur dioxide emissions. Initially, this appears to be an excellent strategy; however, there exists many constraints. The first constraint is the cost. The scrubbers would cost over $719 million over a three year span. And even though you could depreciate the scrubbers over the years, they would have no salvageable value. The second constraint is that there......

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Title: Southern Company Clean Air Act Strategy
Approximate Word Count: 354
Approximate Pages: 2 (250 words per double-spaced page)

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