An aluminium refinery in Gladstone is planning to implement an environmental management project. The project is to purchase new equipment that will lower operating costs and reduce emissions from the refineries, which are currently spread over nearby residential districts.

It is estimated that each tonne of emissions currently causes health costs that each $1 per annum for Gbdstones 50000 residents
Required:
1. Calculate the net financial cost to the refinery of investing in the new
2. Calculate the financial cost or benefit to the community over the five equipment years.
3. What other information might you need to gather in order to undertake a more comprehensive analysis of the project?

Reduction in emissions (tonnes of airborne particles) Additional costs $289 000 Cost savings Initial outlay Year 1 145 500 130 000 125 000 125 000 125 000 $20 500 50 Year 2 Year 3 20 500 20 500 20 500 20 500 50 50 Year 4 50 Year 5 50