A food manufacturing plant has waste product that is now being dumped into a river....
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A food manufacturing plant has waste product that is now being dumped into a river. The industrial waste material could be processed to produce to either fertilized or a remixed waste to digest the organic material to produce methane, carbon dioxide and bacteria cells. This would require the investment of P32,000 in equipment and P5,300 a month for other materials. Labor could cost P1,400 per month. Overhead expenses will cost P 5,600 per year. Taxes and insurance amount to 3% of the first cost of the equipment per year. Payroll, taxes and other benefits amount to 4%. The life of equipment is 5 years with no salvage value at the end of its life. Money is worth 20% to the company. If 3,000 kg of fertilizers are produced per month, which can be sold for P2.20 per kg, should the firm make the investment?
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