Tham khảo tài liệu 'integrated waste management volume i part 9', kỹ thuật - công nghệ, cơ khí - chế tạo máy phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | Economic and Operational Feasibility Analysis of Solid Waste Minimization Projects 271 metals to a recycling processor a process change could be implemented that requires employees to separate plastics from metals before shipment. There is little to no initial investment for this example but there will be added labour costs for separation versus the additional revenue generated by the finer sort to the processor. If the additional revenues outweigh the additional costs the alternative should be implemented. For projects with significant initial investments or capital costs a more detailed profitability analysis is needed. The three standard measures of profitability are Payback period Internal rate of return IRR Net present value NPV The payback period for a project is the amount of time required to recover the initial cash outlay for the project. The formula for calculating the payback period is on a pre-tax basis in years is Capital Investment Payback Period ------- --------------------- 1 Annual operating cost savings For example suppose a manufacturer installs a cardboard baler for a total cost of 65 000. If the baler is expected to save the company 20 000 per year then the payback period is years. Payback period is typically measured in years however some alternatives may have payback periods in terms of months. Many organizations use the payback period as a screening method before conducting a full financial analysis. If the alternative does not meet a predetermined threshold the alternative is rejected. Payback periods in the range of three to four years are usually considered acceptable for low risk investments. Again this method is recommended for quick assessments of profitability. If large capital expenditures are involved it should be followed by a more strenuous financial analysis such at the IRR and NPV. The internal rate of return IRR and net present value NPV are both discounted cash flow techniques for determining profitability and determining
