Harrison Township is studying a 700-acre site for a new landfill. The new site will save $70,000

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Harrison Township is studying a 700-acre site for a new landfill. The new site will save $70,000 in annual operating costs for 10 years, as Harrsion currently uses the landfill of neighboring municipality. Other data are:

Purchase price per acre: $550

Site preparation costs:$110,000

Hurdle rate:6%

Ignore income taxes

Required:

A. Use the net-present-value method and determine whether the landfill should be aquired.

B. Determine the landfill's approximate internal rate of return

Related Book For answer-question

Economics Today

ISBN: 978-0132554619

16th edition

Authors: Roger LeRoy Miller

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Posted Date: Mar 01, 2019 02:36 AM

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Harrison Township is studying a 700-acre site for a new landfill. The new site will save $70,000

Question:

Expert Answer:

A B Let X present value factor 700... View the full answer

Economics Today

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