Question
A paint shop is using approximately 60 drums of solvent per year and generates four 55-gallon drums of waste solvent per year. A 55-gallon drum
A paint shop is using approximately 60 drums of solvent per year and generates four 55-gallon drums of waste solvent per year. A 55-gallon drum of new solvent costs $185.00. The current cost of disposing of the waste drums is $1,390.00 per drum, as shown in the table below.
Hazardous Waste Disposal Cost Estimate for One 55-Gallon Drum
| Waste Determination (In state lab analysis) | $ 175.00 |
| Transportation | $ 310.00 |
| Disposal Site Profile (On site lab analysis) | $ 200.00 |
| Waste Acceptance | $ 125.00 |
| Incineration | $ 580.00 |
| Total | $1,390.00 |
The owner of the shop is considering buying a solvent recovery unit that can convert 10 gallons of solvent in 9 gallons of recovered (and usable) solvent. The implementation cost of a small solvent recovery unit is approximately $6,000.00.
a..What is the payback period for the solvent recovery unit?
b....Except buying a recovery unit, what two other options for reducing solvent waste could you recommend to the owner?
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International Trade Finance
Authors: Indian Institute Of Banking & Finance
1st Edition
9386394723, 978-9386394729
