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Exercise: Transfer Station Example Problem

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TS Facility Costs<br />

‣ Function of amortized capital cost, capacity,<br />

operating costs<br />

– Cost $3,750,000 (for bldg, equipment,<br />

tractor/trailer)<br />

– Capacity of 300,000 yd 3 per year<br />

– CRF is 0.08 (capital recovery factor is a function of<br />

interest rate and years to pay off – converts<br />

capital cost to $/yr), yr -1<br />

– TS operating cost is $225,000/yr<br />

‣ Normalize all costs by capacity

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