Accounting Business Reporting for Decision Making

86 Accounting: Business Reporting for Decision Making

26%–38% customer

cost savings through

leasing schemes

−38%

935

5 years 10 years

Purchase of low-end machines^3 5-year leasing model for high-end machine

20 years

582

1227

905

1714

1158

−26%

Customer’s net present costs^1 of washing machine usage over time^2

USD per customer

−32%

35% increase in

producer prots

through leasing

arrangements

970 660

173

137 186

Sales price

(pre-VAT and retail)

COGS OPEX Prot NVP from

leasing^2

Primary sale of high-end machine

1 Here net present cost is the sum of a customer’s discounted cash outows for washing machine purchases

over a specic time horizon (5, 10 and 20 years)

2 Applied 8% discount rate

3 Low-end washing machines with a lifetime of 2000 cycles and cost around USD 540

5-year leasing model for high-end machine

+35%

High-end machine manufacturer’s prots from primary sale and leasing

USD per machine

FIGURE 2.6 Lease versus purchase of washing machines

Source: Ellen MacArthur Foundation 2012, ‘In-depth — washing machines’, 9 October, http://www.ellenmacarthurfoundation.org/

circular-economy/interactive-diagram/in-depth-washing-machines.

2.63 Sustainability, ethics and regulation

Greenspan is that one-in-a-billion [expletive deleted] who made America the dissembling mess

it is today... laying the intellectual foundations for a generation of orgiastic greed and overcon-

sumption and turning the Federal Reserve into a permanent bailout mechanism for the super rich.

(His) rise to the top is one of the great scams of our time. Greenspan pompously preached ruthless

free-market orthodoxy every chance he got while simultaneously using all the powers of the state

to protect his wealthy patrons from those same market forces. He was a member of the Ayn Rand

‘Collective’ that believed in ‘objective reality’, which boiled down to a belief in self-interest as an

ethical ideal and pure capitalism as the model for society’s political structure.

Source: Taibbi, M 2010, ‘Griftopia’, as cited in Kohler 2011, ‘Week in review’, Eureka Report, 8 October.