ABSTRACT
The previous chapters of this book have dealt with the collection of basic data, the identification of markets, the selection of appropriate system alternatives, and the calculation of costs for facilities. The purpose of this chapter is to present a methodology for combining all of this information in an economic analysis structure for use as a tool in decision-making. The methodology presented in this chapter can be used to decide for each alternative 1) the most economical locations for facilities, 2) the most economical facility capacities and resulting service areas, and 3) the proper number of facilities in multi-facility systems. The methodology can also be used to illustrate the magnitude of the net cost differences between alternative systems both for the initial operating year and over the system’s operating life. The methodology also allows the investigator to conduct sensitivity analyses; that is, test the effects of changes in certain assumptions (inflation rates, interest rates, solid waste quantity, energy and materials unit revenues, etc.) on the net system cost of each alternative.
