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  3. suppose the proportion of the 88,000 gallons of wa

suppose the proportion of the 88,000 gallons of waste that arrives in the form of...

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Accounting

suppose the proportion of the 88,000 gallons of waste that arrives in the form of grease is diverted from the biodigester and is instead used to make biodiesel. Each biodiesel reactor costs $1.8 million, can process 800 gallons of sludge in a day, and converts 75% of the grease by volume to biodiesel. The operating cost including additional reactants, energy, labor, and maintenance is $0.60/gal of grease processed. How much biodiesel can be made per year, and what is the production cost per gallon? If the biodiesel sells for $3.50/gal, is the investment viable?

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