Course Hero Logo

Circular economy summer school exercises.pdf - Summer...

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 1 - 2 out of 2 pages.

Summer school Circular Economy: COST/ BENEFITANALYSISExercise 1The costsfor waste water treatment are 10 000 euro in year 1, 15 000 euroin year 2 en 25 000 euro in year 3. Calculatethe present value of the costswhen r= 10%.Exercise 2The initial investment is 21 875 euro (year 0). The annual net-benefits (=benefits minus costs in year t) are constant (-2 250 euro). The investmentperiod is30 years and the rest value is 500 000 euro (in year 30). CalculateNPV (discount rate 8%) and IRR.Exercise 3A company specialized in waste treatment invested almost 3 years ago 200 000 euroin a waste incineration system. The material is still in good condition and candefinitely be used for another 5 years.However, to comply with environmental legislation, there is a need for extrainvestments. The following options are available:1. The existing installation gets an afterburner, and new control software, whichcost 112 500 euro. With this investment, there is a yearly saving in production

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 2 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Summer
Professor
N/A
Tags
Net Present Value, initial investment

Newly uploaded documents

Show More

Newly uploaded documents

Show More

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture