Calculate the non-depreciable investment

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Reference no: EM131884797

1-The cost of purchasing a VOC thermal incinerator for a given application was $200,000 in March 2010. Estimate the installed cost of the same piece of equipment in June 2015.

Assume that no special building or site preparation is required. Use the equipment component of the CE index to update costs.

2- Because of the material incinerated in Problem 1, the ash produced constitutes a hazardous waste. An offsite facility is required to process it; the capital investment needed is $100,000 in June 2010. Land must be purchased at a cost of $26,000. A working capital of $30,000 is required for the incinerator.

(a) Calculate the depreciable investment for the combined facilities.

(b) Calculate the non-depreciable investment.

3- The cost of felted Teflon bags for use in pulse-jet fabric filters was $120.40/m2 in September 2010. Estimate their cost in May 2015 using an appropriate cost index.

Reference no: EM131884797

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