Solution-Use the net present value method to determine your

Use the net present value method to determine your answer

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Reference no: EM13984644

The City of Bedford is studying a 600-acre site on Route 356 for a new landfill. The startup cost has been calculated as follows:

Purchase cost: ........ $450 per acre
Site preparation: .......$175,000
The site can be used for 20 years before it reaches capacity. Bedford, which shares a facility in Bath Township with other municipalities, estimates that the new location will save $40,000 in annual operating costs.

a. Should the landfill be acquired if Bedford desires an 8% return on its investment? Use the net-present-value method to determine your answer.

Reference no: EM13984644

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Use the net present value method to determine your answer

Reference no: EM13984644

Reference no: EM13984644

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