Ch5,67 The Camino Real Landfill was required to install a plastic liner to preve
ID: 2541791 • Letter: C
Question
Ch5,67 The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater The fill area was 44.000 m2 and the installed liner cost was $8 per m2 In order to recover the investment the owner charges to unload at the rates of $14 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 8 years, If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loa Help Save & E owner make on the investment? 1203)//he t loads, what rate of return The rate of return that will be made by the landfill owner is-% per year,Explanation / Answer
Total Investment cost = 44,000 m2 * $8 m2 = $352,000
Total Revenue per annum = (2,500 * $14) + (650 * $25) + (1,200* $70) = $35,000 + 16,250 + $84,000 = $135,250
Total Revenue in 8 years = $135,250 * 8 years = $1,082,000
Total Profit earned in 8 years = $1,082,000 - $352,000 = $730,000
Total Return % in 8 years =( $730,000 / $352,000) *100 = 207.39 %
Return % per Annum = 207.39 % / 8 years = 25.92 %
Answer : The rate of return that will made by landfil owner is 25.92 % per year