Step 2.1 Identify Key Economic Analysis Assumptions. Determine methods of cost accounting for hazardous waste management, e.g., methods of depreciation to be used for capital equipment, trucks, etc.  Decide what target profit levels (return on investment) should be considered and the standard payback ratio to be adhered to. Identify the economic comparative measures that should be used to evaluate the selected options. 

Step 2.2 Prepare Facility Capital Cost Estimate.  Cost estimating for a waste disposal facility is complex, involving not just the estimation of capital and operating costs, but also the pricing of many different options of collection, transportation, and disposal. For the economic analysis, show both local and hard currency capital costs.  As data allow, separately show engineering, permitting, and legal costs; site acquisition and development (civil) costs; structural and building costs; pollution and other equipment costs; and other material costs.  Determine whether and how the costs of any necessary infrastructure, such as roads or fire protection, should be charged against the hazardous waste facility.  See the box below for two examples of calculating capital costs for thermal treatment systems.

Step 2.3 Prepare Facility Operation and Maintenance Cost Estimate.  Estimate operating costs, including labor, personnel training, recordkeeping, maintenance, energy, perishable supplies, collection, and disposal, as data allow. Perishable supplies should include, as appropriate, supplemental fuel oil or natural gas if needed for operating an incinerator, electrical power for equipment operation and maintenance, water, and wastewater discharge costs, the cost of ash disposal, the costs of periodic emissions testing, etc.

Step 2.4 Conduct an Economic Analysis of Selected Options. Combine operating costs with annualized capital costs.  Once these costs have been identified and normalized (for example, on a cost-per-ton-of-waste-handled or annual cost for handling, treating, and disposing of a waste), calculate them on each option.  Based on the analyses conducted in this task and prior tasks, identify two or three preferred options for more detailed financial analysis.