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South African Journal of Industrial Engineering

On-line version ISSN 2224-7890
Print version ISSN 1012-277X

S. Afr. J. Ind. Eng. vol.20 n.2 Pretoria  2009


A social cost benefit analysis of extending an existing recycling plant to accommodate the recycling of the plastic fraction of cable scrap



M. du PreezI; T. LotteringII

IDepartment of Economics, Nelson Mandela Metropolitan University, South Africa
IIAberdare Power Cables, South Africa




This paper investigates the economic efficiency of extending an existing cable waste recycling plant to accommodate the recycling of the plastic fraction of cable waste. The paper shows that when a cost benefit analysis (CBA) is carried out, the decision-making criteria generate conflicting results. More specifically, the net present value (NPV) is greater than zero, the internal rate of return (IRR) is less than the social discount rate, and the benefit cost ratio (BCR) is less than unity. Based on these results, one is unable to provide unqualified support for the project.


Die navorsing word toegespits op die uitbreiding van 'n bestaande kabelskrootaanleg vir die herwinning van plastiekafval. Koste-opbrengs-ontleding (CBA) toon dat toepaslike kriteria soos interne rentabiliteit (IRR) en koste-opbrengs-verhouding (BCR) nie die uitbreiding onomwonde ondersteun nie.



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1 Corresponding author
2 The author was enrolled for an MCom degree at the Department of Economics, Nelson Mandela Metropolitan University

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