Using net present value of cost is recycling feasible

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Reference no: EM131047262

A company is considering recycling its waste to generate saturated steam for its orocessing plant. Assume N=20 and I=5% (work in millions $). Using net present value of cost, is recycling feasible?

Current System: initial cost= 0 ; annual operating cost= $1 million; waster disposal per year= 1/2 million ; salvage value= 0

Proposed system: initial cost= 3 million; annual operating cost= 1/4 million; waste disposal= .1 million ; salvage value= .05 million

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Reference no: EM131047262

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