Scenario 2 Dubai government has signed an agreement for construction of a 228,000 sq. ft. electronics and specialised waste recycling plant at Dubai Industrial Park by December 2018. The construction will cost 3m AED and ongoing operating costs are estimated to be 500k AED annually. The facility wll serve as the region’s largest centre of expertise for electronic waste management. The plant will recycle the entire range of end-of-life electrical and electronic equipment ranging from consumer and industrial to commercial and military appliances, such as air conditioners, batteries, IT equipment, household appliances, military avionics and mobile phones. Phase 1 of the plant will comprise state-of-the-art equipment to process 50,000 tonnes of electronic waste annually Phase 2, which will go live at the end of the second year of operation and cost another m AED for construction, will increase capacity to 75,000 tonnes annually. Each tonne generates 50 AED of revenue through resale or reuse. The cost of capital is 10%. https://d2vlcm61l7u1fs.cloudfront.net/media%2F288%2F28807b88-1364-42b6-8128-29d4bb274d3e%2Fphp8TxYZA.png

Aim – Construction of 22800 sq ft plant.
Cost – 30,00,000 AED and operation cost 5,00,000 AED annually
Phase 1 – Capacity to recycle 50,000 tonnes annually
Phase 2 – Capacity will be increased to 75,000 tonnes annually ( after investing more 1 million AED)
Cost generated from recycle – 50 AED per tonne
Money earned in Phase 1 = 50000 * 50
= 25,00,000 AED
Money earned in Phase 2 = 75000 * 50
= 37,50,000
In Phase 1 investment = 35,00,000 AED
Phase 1 loss = 10,00,000 AED
Phase 2 investment = 15,00,000 AED
Phase 2 profit = 22,50,000 AED
So by Phase 2 government will be able to earn profit
Project plan
Task 1 = Construct plant in one year for 50,000 tonnes capacity for 3 million AED
Task 2 = Improve the plant capacity and increase it to 75,000 tonnes capacity and in that more 1 million AED will be invested
 
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