Waste Management Collection Savings Learning Objectives: - Practical solutions to Fossil Fuel + climate mitigation. - Increase resiliency of Municipalities by reducing cost of Fuel. - Improve quality of infrastructure - Solutions to Waste Management problems in Jordan - Learn how to apply financial principles to actual problems. Given Information: - Instead of collecting the waste from the consumers and sending it to landfills, you decide to start a "Recycling program". - The Recycling Program is for 1,000 Commercial Customers, You give them Garbage Bins and each day the city collects different type of material; Cardbeard, metal, glass, plastic, organic. - You will build a waste management collection station 200x 100m to separate the segregated waste and sell it. - Annual Inflation: 3.5% - Cost of Diesel - 0.785JD/liter. - Annual increase in cost of Diesel: 2% - CO2 emissions= a Liter of diesel produces 2.6391kgs of CO2 - Budget for construction =500,000JD - Budget for equipment =400,000JD - Operators at Recycling area, 5 people, 700JD per month salary - Solar PV To cover the annual electricity needs. - Tree every meter, 3 lines of trees around the perimeter. - The number of avoided trips of Garbage Compactor daily to the landfill =6 - The quantity of Diesel reduced per Garbage truck from daily trips to the landfill = 77 liter/truck. - Trucks work six days a week. - Four trucks are collecting the segregated waste daily at 2 trips/day 6 days/ week. Each truck is saving 25 liters per trip. - The Recycled Material is sold at auctions each year. The estimated revenue is 40,000JD. Required Calculations (I=5%,n=20 years) 1. Calculate the following: a. Payback Period, (PBP), b. Net Present Value, (NPV) c. Internal Rate of Return, (IRR), d. Benefit/Cost Ration (B/C) e. Cash Flow Diagram 2. What is the annual Diesel reduction? 3. What is the lifetime Diesel reduction? 4. What is the annual CO2 emission reduction (Metric ton CO2 )? 5. What is the lifetime CO2 emission reduction (Metric ton CO2 )