Question

The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 48,000 m- and the installed liner cost was $8 per m. In order to recover the investment, the owner charges to unload at the rates of $18 per pickup. $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 5 years. If the annual traffic is estimated to be 2500 pickup loads. 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner is % per year.

Answer 1

solution: Given, fill area = 48,000m? installed linear cost = 88 perm? unloadɣate = $18 per pickup dump truck = 825 Compactor truck = 870. time = syears. annual traffic = 2500 pick up loads 650 dumptruckloads 1200 Compact truck loads Rate of Return will the land fill owner make on the investment is: Rate of Return is the rate of intereste paid on unpaid which is bonowed, or the interest rate balance of money earned on the unrecovered balance of money lentor investment

Anwal payment = * = p [cit+197] (Le= Flalf, i,n) and Annual payment Aapi (tijn? cie) A = P(Alppiin) » initial Gost will be=(8) (48000) -$384000 Annual revenue will be = (18) (2500) + (650)(25) +(90) (1200) = 45000 +16250 +84000 - (145250) The.cavation formed from the given Carhaflow here'is: 3 0 = - 384000 + 145250 (Pla, it, 5) = 384000 = 145250 (Pla, i*,5) 9.6437 = (pla, it, 5)

from fables we have (PLA, 251,5) = 2,689 and also (pla, 30.1175) = 9.436. Hence the ROR is between ast and 30t. By linear interpolation: IRR = 14 + Cito high – 17.(ow) low I l Flow - (pla, ind Flow-thigh / = 957). +60-951. 52.689 – 264377 C2.689-2.436 | ro.04531 =0.75 +0.05 G ooi = 0.25 +0.05 (0.1490) 0.25 +0.008952 = = 0.2589 TRR = (25.89.1] Hence Rate of Retum = 25.89 ).