Essay Example on Green Movement as Social Change: Impact on College Campuses

Introduction

The idea of exploring the green movement as a social change has contributed to the improvement of renovation and construction projects on college campuses. However, the raised costs captured in capital budgets are offset by decreased ongoing costs via savings in utility expenses (Barr & McClellan, 2018). One of the outcomes of having sustainable capital projects is to attract funding via grants used to support development through gifts received from donors who have a passion for this course. Apart from having outcomes on the renovation and construction project's capital budget, its outcome on the unit in the facility' auxiliary budget cannot be denied. In essence, sustainable capital projects result in increased maintenance costs and ongoing additional staffing requirements.

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Did their Decision Help or Hurt

The good outweighed the bad based on the decision made by the institution. For instance, the cost used in construction was identified to pose a negative effect on unanticipated environmental factors, labor actions, and zoning disputes in the preparation site. The institution identified that change orders were negatively affected (Barr & McClellan, 2018). An effect in the change order may cause extra charges in the project. Change orders are needed to create a contingency line of the budget.

The institution was privy that inadequate planning might contribute to increased costs. In essence, the capital budget for most renovation is negatively influenced based on insufficient and inaccurate data concerning the unexpected asbestos abatement issues and establishing infrastructure hidden behind walls (Barr & McClellan, 2018). The smart lessons with wireless access are useful in creating a sense of community where students can access information. The ability to meet the legal requirement is essential to provide quality programs, services, and facilities. ,

Potential Alternative

The institution ought to have used the "rule of thumb." In essence, the institution managers needed to pursue the rule to realize satisfactory results that reveal the apparent outcomes. The rule of thumb is one of the heuristic procedure that finds a permissible solution to a well-defined and quantitative decision problem (Bakir, 2016). In this context, the managers have to solve at least two problems. Such that, there is a need for the managers to establish heuristic rules and conduct the evaluation. Typically, quantitative evaluation criteria and methods are vital in ranking the project.

The institution should consider the use of the payback period. In this context, a shorter payback period will be appropriate, as the project will yield enough money to pay for itself within a shorter time (Bakir, 2016). The institution should use the payback period when liquidity has major social concerns. If the institution lack funds based on social issues, they will only work on a single project one at a time. The payback period is an easy strategy that can be used to calculate an already established cash flow forecast.

Social issues can be addressed by incorporating an internal rate of return. Ideally, an internal return rate refers to a discount rate that yields a net present value of zero. In this context, an increase in the discount rate will lead to a decrease in the future cash flow. However, if the discount rate is reduced, the future cash flow increases. If the internal rate of return is implemented, it creates a benchmark figure for all projects assessed by the institution based on its capital structure.

One of the ways of solving social concerns is by incorporating net present value. Notably, the approach is the most effective, accurate, and intuitive valuation technique to capital budgeting social problems. In this context, every project with a positive NPV has to be accepted, whereas those with negative net present value need to be rejected (Bakir, 2016). If every positive net present value projected is not initiated and the funds are limited, there is a need to accept the high discounted value.

The institution needs to define its goals and evaluate how capital will steer them to realize the set goals. In essence, the institution should integrate their objectives into the decision-making process. For that reason, the institution shall focus on the outcome instead of inputs.

The institution should take an inventory of their assets by evaluating its condition and current capabilities. As a leading institution, the organization should have an extensive inventory. Such that, the company needs to highlight the conditions and evaluate its performance and assets (Bakir, 2016). The institution needs to authorize the new project where the managers play a leading role in identifying the existing base of the asset.

Conclusion

In conclusion, social change has contributed to the improvement of renovation and construction projects on college campuses. Sustainable capital projects are to attract funding via grants used to support development through gifts received from donors. Notably, a sustainable capital project results in increased maintenance costs and ongoing additional staffing requirements. The solution to these problems entails the use of the rule of thumb, use of payback period, internal rate of return, net present value, defining the goals, and taking an inventory of the assets. The institution needs to define its goals and evaluate how capital will steer them to realize the set goals.

References

Bakir, C. (2016). How can interactions among interdependent structures, institutions, and agents inform financial stability? What we have still to learn from global financial crisis. Policy Sciences, 50(2), 217-239. https://doi.org/10.1007/s11077-016-9261-1

Barr, M. J., & McClellan, G. S. (2018). Budgets and financial management in higher education. John Wiley & Sons.