Reference no: EM132562618

Question 1: A food manufacturing plant has waste product that is now being dumped into a river. The industrial waste material could be process to produce either fertilizer or a remixed waste to digest the organic material to produce methane, carbon dioxide and bacterial cells. This would require the investment P. 32,000.00 in equipment and P. 5,300 a month for other materials. Labor could cost P. 1,400 per month. Overhead expenses will cost will cost P. 5,600 per year. Taxes and insurance amount to 3% of the first cost of the equipment per year. Payroll, and other benefits amount to 4% of the first cost of the equipment per year. The life of the equipment of 5 years with no savage value at the end of its life. Money is worth 20%to the company. If 3,000 kg of the fertilizers are produced per month, which can be sold for P.2.20 per kg., should the firm make the investment? How much will he save annually due to his decision?