Determine the true payback period and present worth analysis of this initiative. Data Used in Present Worth Analysis:

Sutton Recycling Equipment Co$.$ Lead Recycler

A complete overhaul of the facility is required every three years or so$.$ This requires

a shutdown of the entire section of the plant containing the recycler, replacement

of several filters, venting and material handling devices, and chemical treatment to

remove accumulated toxins. Costs for this overhaul will occur at the end of years $4,7$

and $10.$

The costs are:

Assumptions:

Recycling facility has a study period of $10$ years

The interest rate to be used for this sort of project for Canadian Widgets is $5\%$

All costs are assumed to occur at the end of each period, except for installation

costs which occur at the beginning of the project.

Data from Sutton Recycling Equipment Co$.$:

CURRENT:

Current costs to outsource lead recycling

$$100,000$ year

PROPOSED:

Power and other non$-$labor operating costs

$$4200$ year

Model x$90$ recycler core leased from supplier

$$45,000$ year

Incremental labor costs for operating recycler

$$25,000/$year

Installation cost for infrastructure to support recycler

$$30,000$ once