Quiz+8+ch+12 - $40,000 per year less to operate than the...

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ACCT 2101 – Quiz 8 Take Home Quiz: Chapters 12 Due: Thursday, April 26, 2007 The East Baton Rouge Parish Metro Council is currently considering the purchase of a site for a new sanitary landfill. The purchase price for the site is $195,000 and preparatory work will cost $73,400. The landfill will be usable for 10 years. The Council hired a consultant, who estimated that the new landfill would cost the City/Parish
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Unformatted text preview: $40,000 per year less to operate than the current landfill. The current landfill will also last ten more years. For a landfill project, the City/Parish has a relatively low 6% hurdle rate. Required : Calculate the following: a. Payback period b. Net present value c. Profitability index d. Internal rate of return...
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