Economic efficiency of plastic recycling plant construction

Abstract

Abstract Solving the problem of plastic pollution is a priority for all of mankind. A significant part of all plastic waste is recyclable and reusable. However, not every method of recycling and reusing plastic is cost-effective. The aim of the study is to justify the economic efficiency of the construction and operation of a plastic recycling plant in the city of Kazan (Russian Federation). When performing the calculations, the discounted method for efficiency assessment of investment projects was used. The method involves the calculation of several efficiency criteria: NPV, IRR, PBP, PI. The study justifies the economic efficiency of the plant construction project based on the calculated indexes: NPV (net present value of the project) is 182 million rubles, IRR is 41.6 %. As a result of risk modeling, it was found out that the greatest impact on the net present value of the project is made by an increase in the discount rate. Moreover, the project is highly resistant to a possible reduction in the price and volume of sales, growth in current and investment expenses. Putting the results into practice opens up potential for solving the complex task of saving natural resources, expanding the local raw material base for the production of building materials, and disposing waste having a long decomposition period, more specifically plastic waste.