Economic Analysis in Banking

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Economic Analysis for Halon
· Pounds of Halon 1301/year recycled:                                               1000
  Equipment costs for halon recycling equipment:                                $39,500
  Maintenance costs for halon recycling equipment:                                 $400
· Labor Rate:                                                                       $30
· Labor to remove and ship cylinders:                                                  5
· Labor to perform on-site recycling:                                                 24
· Shipping costs:                                                                  $300
The following are typical costs for services:
 Recycling and banking in your cylinders:                                           $75
 Recycling to Military Specifications:                                               $2
 Recycling and storage in a bulk storage facility:
  Recycling fee:                                                                     $2
  Banking fee:                                                                $100-$200
  Cylinder destruction:                                                            $100

Annual Operating Cost Comparison for Halon Recycling Service and
Halon Recycling Equipment

                                                                        Halon Recycling
Equipment Costs                                                                       $0
Operational Costs:
Labor                                                                               $150
Shipping:                                                                         $1,500
Maintenance                                                                           $0
Recycling Service:                                                                $2,000
Total Operational Costs:                                                          $3,650
Total Recovered Income:                                                               $0
Net Annual Cost/Benefit:                                                         ($3,650)

Economic Analysis Summary
Annual Savings for Halon 1301 Recycling off-site:                                  $350
Capital Cost for Diversion Equipment/Process:                                   $39,500

Recycling Services will be more cost effective unless very
large quantities of Halon are recycled on-site.

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and from               5 halon 204 spheres

hours per cylinder
per cylinder

/cylinder per year

per year

Halon Recycling


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Description: Economic Analysis in Banking document sample