The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 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 $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 50,000 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 $10 per pick-up, $25 per dumptruck, and $70 per compactor-truck load. The fill area is adequate for 4 years. If the annual traffic is estimated to be 2500 pick-up loads, 650 dumptruck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...
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Question
The Camino Real Landfill was required to install a
plastic liner to prevent leachate from migrating
into the groundwater. The fill area was 50,000 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 $10 per pick-up, $25 per dumptruck,
and $70 per compactor-truck load. The fill
area is adequate for 4 years. If the annual traffic is
estimated to be 2500 pick-up loads, 650 dumptruck
loads, and 1200 compactor-truck loads, what
investment?
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