COST ESTIMATION & ANALYSIS
Itemized Cost Approximation
BREAKDOWN OF CAPITOL COSTS
The table above demonstrates a breakdown of the capital costs associated with the project design and construction, including a 10% contingency plan of the overall design. The approximated total cost of the composting site and facility would be approximately $298,185. The cost estimation includes pricing for major construction costs like the pole barn facility, grading, the composter, utilities, building the project site’s working areas, restroom, and storage bins.
REOCCURRING COSTS
Annual maintenance costs for the mechanical auger was calculated at 3% of total capital cost for the machine which is advised by Green Mountain Technologies. Annual maintenance costs associated with the mechanical auger was calculated to be $1,769.40 (Green Mountain Technologies 2018). Annual power cost was calculated at $485 a year assuming 10 to 14 kwh is used daily by the machine with a charge rate of $0.12 per kwh. Based on haul away costs from the Wellness Kitchen at AU, of $12,742 annually, a payback period could be determined. Subtracting the annual operation costs from the savings from diverting haul away costs comes to $10,487.60. By saving $10,487.60 for the redirection 1,000lbs of pre-consumer food waste, the payback period on the construction of the facility at the current value of money would be ~28.4 years.