Metal Recycling and Salvage receives the opportunity to salvage scrap metal and other materials from an old industrial site. The current owners of the site will sign over the site to Rejuv at no cost. Rejuv intends to extract scrap metal at the site for 24 months, and then will clean up the site, return the land to useable condition, and sell it to a developer. Projected costs associated with the project follow

Just need 2 and 3

Requirement 1. Assuming that Rejuv expects to salvage 60,000 tons of metal from the site, what is the total project life cycle cost? Total Life-Cycle Costs Variable costs $ 6.000,000 Metal extraction and processing Fixed costs 96,000 81,000 216,000 78,000 429,000 100,000 $ 7.000,000 Metal extraction and processing Rent on temporary buildings Land restoration Selling land Total life-cycle cost Requirement 2. Suppose Rejuv can sell the metal for $180 per ton and wants to earn a profit (before taxes) of $70 per ton. At what price must Rejuv sell the land at the end of the project to achileve its target profit per ton? The life-cycle operating income Rejuv wants to earn is 2. Suppose Rejuv can sell the metal for $180 per ton and wants to earn a profit (before taxes) of S70 per ton. At what price must Rejuv sell the land at the end of the project to achieve its target profit per ton? and 3. Now suppose Rejuv can only sell the metal for $170 per ton and the land at $120,000 less than what you calculated in requirement 2. If Rejuv wanted to maintain the same markup percentage on total project life-cycle cost as in requirement 2, by how much would the company have to reduce its total project life-cycle cost? and Print Done Fixed Variable Months 1-24 Metal extraction and processing Rent on temporary buildings Administration $4,000 per month $3,000 per month $8,000 per month $26,000 per month 429,000 total $100,000 total $100 per t Months 1-27 Months 25-27 Clean-up Land restoration Cost of selling land