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17.26- Environmental and social costing for decisions: orchard. please help. E1726 Environmental and social costing for decisions: orchard LO17.8 Renmark Orchards and Cannery is considering

17.26- Environmental and social costing for decisions: orchard. please help.

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E1726 Environmental and social costing for decisions: orchard LO17.8 Renmark Orchards and Cannery is considering buying high pressure cleaning equipment that vacuums waste 17.12 liquids into a storage tank and then puries the waste. The wastewater can then be pumped back onto orchards. The system will avoid any leakage of liquid waste into the Murray River, which has happened once every two years, and will avoid the related workers' compensation claims that have arisen every ve years. The operating characteristics are as follows: Initial outlay for new equipment, 10-year life, no residual value $978690 Annual operating cost over 10-year life $ 31 303 113. Depreciation 10% p.a. Savings in water cost due to reclaimed water $ 31974 13.3. Total cost of cleaning and maintaining the system every 4 years $ 29300 Workers' compensation claims $ 1 1 000 Required: 1. Prepare a summary of the total costs for the waste cleaning system for the next 10 years. 2. Should Renmark Orchards invest in this equipment even if it is uneconomic

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