The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 43,000 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 $13 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 7 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner, (in %) Round to the nearest two (2) decimal places Hint: compute for internal rate of return Add your answer
The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area was 43,000 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 $13 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 7 years. If the annual traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the landfill owner make on the investment? The rate of return that will be made by the landfill owner, (in %) Round to the nearest two (2) decimal places Hint: compute for internal rate of return Add your answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The Camino Real Landfill was required to install a plastic liner to prevent leachate from migrating into the groundwater. The fill area
was 43,000 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 $13 per pickup, $25 per dump truck, and $70 per compactor truck load. The fill area is adequate for 7 years. If the annual
traffic is estimated to be 2500 pickup loads, 650 dump-truck loads, and 1200 compactor-truck loads, what rate of return will the
landfill owner make on the investment?
The rate of return that will be made by the landfill owner, (in %)
Round to the nearest two (2) decimal places
Hint: compute for internal rate of return
Add your answer
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