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In need please Cost Reduction Proposal: IRR. NPV, and Payback Period JB Chemical currently discharges liquid waste into Calgary's municipal sewer system. However, the Calgary
In need please
Cost Reduction Proposal: IRR. NPV, and Payback Period JB Chemical currently discharges liquid waste into Calgary's municipal sewer system. However, the Calgary municipal government has informed JB that a surcharge of $4 per thousand cubic liters will soon be imposed for the discharge of this waste. This has prompted management to evaluate the desirability of treating its own liquid waste. A proposed system consists of three elements. The first is a retention basin, which would permit unusual discharges to be held and treated before entering the downstream system. The second is a continuous self-cleaning rotary filter required where solids are removed. The third is an automated neutralization process required where materials are added to control the alkalinity-acidity range. The system is designed to process 500,000 liters a day. However, management anticipates that only about 200,000 liters of liquid waste would be processed in a normal workday. The company operates 300 days per year. The initial investment in the system would be $360,000. and annual operating costs are predicted to be $150,000. The system has a predicted useful life of twelve years and a salvage value of $40,000. Determine the project s net present value at a discount rate of 26 percent (Round to the number. Use a negative sign with your answer appropriate) $ 0 Determine the project s approximate internet rate of return (Round to the nearest whole percentage.) $ 0 Step by Step Solution
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