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The DELL Inc. is thinking about whether to begin offering its clients the option to have their old personal computers recycled when they purchase new
The DELL Inc. is thinking about whether to begin offering its clients the option to have their old personal computers recycled when they purchase new systems. This new recycling system would require DELL to invest $700,000 in the grinders and magnets used in the recycling process. The company estimates that for each system it recycles, it would generate $1.50 in incremental revenues from the sale of scrap metal and plastics. The machinery has a five-year useful life and will be depreciated using straight-line depreciation toward a zero salvage value. DELL estimates that in the first year of the recycling investment, it could recycle 100,000 PCs and that this number will grow by 25% per year over the remaining
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