Viability analysis of a plastic waste business unit: assessing economic returns and environmental impact

Abstract

The economic and environmental viability of a plastic waste business unit was assessed. The monthly historical value of plastic recycling industries in Guaranda canton was used to project supply and demand for the next five years. The results showed an Internal Rate of Return (IRR) of 0.67, surpassing the initial discount rate of 0.1433 and the Minimum Acceptable Rate (MAR) of 22% set by financial institutions. It is concluded that the project is viable, with a return of $0.46 per dollar invested, representing a business opportunity and a potential source of direct and indirect employment.