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. ( 1 5 points ) A city wastewater treatment plant is working on a project to reclaim energy from waste methane generated by the

.(15 points) A city wastewater treatment plant is working on a project to reclaim energy
from waste methane generated by the plant's anaerobic digester.
The project cost is anticipated at $2,100,000. The digester will cost $75,000 per year to
operate. The digester will require major rebuilding at year 10 and year 20 at a cost of
$250,000 per rebuild. The project will generate energy cost savings to the plant of
$375,000 per year. The project life is 30 years; there is no significant salvage value at
project end.
Use CONVENTIONAL BENEFIT-COST ANALYSIS to determine whether the project is
worth pursuing. Use a MARR of 15%.

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