Calculate irr-payback priod and npv

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Reference no: EM132032511

Treatment disposal Cost 1,250,000

Chemical cost 350,000

% Reduction in chemical costs 35

Capital cost of recovery unit 2,400,00

Annual maintenance cost of recovery unit 240,000

Escalation factor 11%

Discount factor 19%

Income tax rate 31%

Currently, an electroplating shop treats its chromium-bearing wastewater by chemical precipitation and disposes sludge generated from the treatment process through a private TSD facility. Annual treatment and disposal costs the company X pesos annually. As part of their cleaner production strategy, the company is contemplating on installing a chromium recovery system that would reduce not only treatment and disposal costs but also save the company in chemical consumption. Calculate IRR, B/C Ratio, Payback Priod, NPV.

Reference no: EM132032511

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