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The annual costs of a hazardous waste facility are addressed

A community wants to construct a hazardous waste incinerator for household hazardous waste. The cost of the facility is expected to be $4,000,000. The cost of operating this facility is estimated to be about $20,000 per year plus salaries of $100,000 annually. The insurance on the facility will be $3,000 per year. What is the annual cost of this facility to the community? Assume that the facility will have a useful life of around 15 years.

Solution Preview

The cost of the facility is 4,000,000 / 15 yrs. = 266,667 per year after depreciation expense is taken.
The cost of operating the facility is 20,000 per year + 100,000 in annual salaries. So far, we have ...

Solution Summary

This solution discusses the following scenario:

A community wants to construct a hazardous waste incinerator for household hazardous waste. The cost of the facility is expected to be $4,000,000. The cost of operating this facility is estimated to be about $20,000 per year plus salaries of $100,000 annually. The insurance on the facility will be $3,000 per year. What is the annual cost of this facility to the community? Assume that the facility will have a useful life of around 15 years.

$2.19