The water saving cost is $17,900/ year.
The oil savings cost is $13,700/ year.
The annual energy cost is $980/year.
Project implementation is $27,000. Environmental tax savings is $8000. Total project savings of $32580 with a payback period of 0.7 years.
a) What is the impact of the economic analysis assuming the project operates for 5 years with a 3% inflation rate?
b) what is the impact when there is a 4% tax increase every 5 years?
c) what is the impact when there is a 3% increase in cost of water and energy?