A landfill charges $45 dollars per ton and $60 per load to recieve the waste. Th

Question

A landfill charges $45 dollars per ton and $60 per load to recieve the waste. The plant operates 5 days a week and 50 weeks a year.

MARR = 15%

12 year analysis period

Reccling option: Cardboard bundled for shipment can be sold for 75 dollars per ton. Estimated 2 tons of cardboard per day. To collect cardboard will require a worker for 3 hours per day at a cost of 18.50 per hour. Bailing equipment will cost 22000 to install and 45 per week to operate, 4500 per year to maintain and lasts 12 years.

Currently 35000 wooden pallets per year (350 tons) are scrapped. A pallet shredder costs 8000 dollars. The chipped pallets can either go into the wate container to incresethe container weight capacity by 10 percent or the chips can be picked up for a charge of 60 dollars per ton. The shredder has no salvage value and a 6 year useful life. Operating and maintencance cost 1500 per year.

Create a decision tree based on the available waste management options and determine the best option for the plant.

Please draw on paper.

Explanation / Answer

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