Quality Metal Recycling and Salvage receives the opportunity to salvage scrapRequirements metal and other materials from an old industrial site. The current owners of the site1. Assuming that Quality expects to salvage 50,000 tons of metal from the site will sign over the site to Quality at no cost. Quality intends to extract scrap metal atwhat is the total project life-cycle cost? 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: 2. Suppose Quality can sell the metal for $140 per ton and wants to earn a profit (before taxes) of $30 per ton. At what price must Quality sell the land at the end of the project to achieve its target profit per ton? EEB (Click the icon to view the project costs.) Ignore time value of money. 3. Now suppose Quality can only sell the metal for $130 per ton and the land at $60,000 less than what you calculated in requirement 2. If Quality wanted to maintain the same mark-up 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? Requirement 1. Assuming that Quality expects to salvage 50,000 tons of metal from the site, what is the total project life-cycle cost? Total Life-Cycle Costs Variable costs Metal extraction and processing Fixed costs Metal extraction and processing Rent on temporary buildings Administration Cleanup Land restoration Selling land Total life-cycle cost Fixed Variable Months 1-24 Metal extraction and processing $3,500 per month $95 per ton Months 1-27 Rent on temporary buildings $2,500 per month $6,500 per month $31,000 per month $745,000 total $85,000 total Administration Months 25-27 Cleanup Land restoration Cost of selling land