Treatment disposal Cost 1,250,000
Chemical cost 350,000
% Reduction in chemical costs 35
Capital cost of recovery unit 2,400,00
Annual maintenance cost of recovery unit 240,000
Escalation factor 11%
Discount factor 19%
Income tax rate 31%
Currently, an electroplating shop treats its chromium-bearing wastewater by chemical precipitation and disposes sludge generated from the treatment process through a private TSD facility. Annual treatment and disposal costs the company X pesos annually. As part of their cleaner production strategy, the company is contemplating on installing a chromium recovery system that would reduce not only treatment and disposal costs but also save the company in chemical consumption. Calculate IRR, B/C Ratio, Payback Priod, NPV.