Evaluate economics of biological emission control system

Assignment Help Financial Management
Reference no: EM13846211

Evaluate the economics of a biological emission control system and compare it to the thermal/incineration system. For the biological based treatment system, the capital cost is $100,000 with routine maintenance costing $15,000 per year for the first 15 years and $20,000 per year for the next 10 years. The useful life of the biofiltration system is 25 years and the salvage value is $25,000.The PR staff estimate using the green technology will save $8,000 in reduced community outreach programs annually. The project team estimates the waste output reduction savings to be $26,500/yr and the benefits of the chance weighted carbon credits savings to be $17,000 annually. The discount rate is assumed to be 5% by your corporate office.

A) Draw a cash flow diagram for the thermal/incinerator system and the biological-based treatment system economics.

B) What is the equivalent present value (year 0) cost of the salvage value for the biofiltration system at 25 years?

C) What is the equivalent present value/cost (year 0) of the total maintenance costs for the biofiltration system?

D) What is the total net equivalent present value (year 0) for the biofiltration system?

E) What is the payout for the biofiltration system?

F) What is the rate of return (ROR) of the biofiltration system?

G) Which emission control system is the most cost effective in terms of NPV, payout, and ROR? Explain.

Reference no: EM13846211

Previous Q& A

  Discussed three theories of behavioural finance

Discussed three theories of behavioural finance that may influence investment in Ponzi scheme. Discuss 3 reasons why Ponzi scheme may be operated by and among the educated

  Calculate the benefit cost ratio

Roto Air plans to spend $1,000,000 on this project, resulting in a total savings of $2,500,000 over the life of the project. Calculate the Benefit Cost Ratio. Important: show your work. Ignore any effects of the time value of money

  What is annualized return on this investment

Suppose you buy stock at a price of $83 per share. Three months later, you sell it for $89. You also received a dividend of $.38 per share. What is your annualized return on this investment?

  Margin call price and account equity

You short sold 800 shares of stock at a price of $45 and an initial margin of 55 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call? What is your account equity at this stock price?

  What is the present value of the payments

Suppose you are going to receive $13,500 per year for five years. The appropriate inerest rate is 8.4 percent. What is the present value of the payments if they are in the form of an ordinary annuity and what is the present value if the payments are ..

  Yield expressed with semi-annual compounding

The six month and one-year rates are 3% and 4% per annum with semi-annual compounding. Is 3.90% or 3.95% or 3.99% closest to the one-year par yield expressed with semi-annual compounding?

  What is the value of the missing cash flow

The present value of the following cash flow stream is $8,400 when discounted at 9 percent annually. What is the value of the missing cash flow?

  What is the new divisor for the price-weighted index

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

  What is the earnings per share for the company

Assume a stock selling for $45.01 has a dividend yield of 2.1 percent and a PE ratio of 20.4. What is the earnings per share (EPS) for the company? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  What evidence do you see that hobson has vision

What evidence is presented in this story that Bartz has good cognitive skills and which personality traits does Bartz appear to possess?

Reviews

Write a Review

 

Similar Q& A

  Affected by a stock dividend but not by a stock split

Which of the following balance sheet accounts will be a affected by a stock dividend but not by a stock split?

  What is the present value

An investment will pay you $43,000 in 10 years. If the appropriate discount rate is 7 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. (..

  Q1 circle the right statementa in the statement of cash

q1. circle the right statementa. in the statement of cash flows a reduce in inventories is reported as a use of cash.

  How much do firms market and book value per share differ

Bauer software''s current balance sheet show total common equity of $ 5,125,000. The company has 530,000 shares of stock outstanding, and they sell at a price of $ 27.50 per share - By how much do the firm''s market and book value per share differ..

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Very flexible in your repayment plan

You borrowed $20,000 today from your uncle to finance your college education. Your uncle is very flexible in your repayment plan, but he will charge an 8% interest compounded annually for any unpaid balance. Suppose your payment plan is as follows

  Outstanding bonds-what is the bonds price

Nungesser Corporation's outstanding bonds have a $1,000 par value, a 6% semi-annual coupon, 18 years to maturity, and an 7.5% YTM. What is the bond's price? Round your answer to the nearest cent.

  How about consumer protection legislation

Since the 2008-2011 financial crises, banks have become leery of lending to consumers. There has been much research completed on this subject and the blame has been a subject of much controversy. Fast-forward to 2013 and 2014. How about consumer prot..

  Bond equivalent yield and discount yield

The treasurer of a large corporation wants to invest $36 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 4.48 percent; that is, the EAR for this investment is 4.48 per..

  Discuss the concepts of marginal product and marginal cost

Discuss the concepts of marginal product and marginal cost. Also discuss the importance of trends in these and other economic measures and how time-series analysis (trend analysis) can be used or misused to make important management decisions.

  Strik-it-rich gold mining company is contemplating expanding

The Strik-it-Rich Gold Mining Company is contemplating expanding its operations. To do so it will need to purchase land that its geologists believe is rich in gold. Strik-it-Rich’s management believes that the expansion will allow it to mine and sell..

  Compounding frequency and time value

Compounding frequency and time value: You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd