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Environmental Analysis Charlie Jo Environmental Essay

Assuming a 10% annual increase in the price per kWh yields the following costs of 15,000 kWh of purchased electricity: Year 0: $3,000

Year 1: $3,300

Year 2: $3,630

Year 3: $3,993

Year 4: $4,392

At a 75% savings, cash inflow would be:

Year 0: $2,250

Year 1: $2,475

Year 2: $2,723

Year 3: $2,995

Year 4: $3,294

The additional savings in preventing costs of carbon emission removal can be estimated at two cents per kg, for an additional annual savings of $3,000. According to the Net Present Value equation, each of these projected inflows must be discounted by the discount rate (given as 5%), resulting in the following determination of value:

NPV = (5250)+(5475/1.05)+(5723/1.05^2)+(5995/1.05^3)+(6294/1.05^4) = $26,012, meaning the project is definitely worth the initial cost of $22,000 even from a purely financial perspective.

Environmental Performance Indicators

& dye
40

15

40

10

Water input

70000

0.008571429

20000

0.02

Water waste

60000

0.01

10000

0.04

Solid waste

2

2

Carbon equiv.

0.0

0.0

Finished prod.

Efficiency is very similar in both product lines in terms of raw material and electricity usage; it takes far more water and produces much more waste water to produce the heavy linen clothes, though solid wastes and carbon equivalents are identical. A slight difference in chemical and dye use favors the production of heavy linens as opposed to swimwear.

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