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Comprehensive Review of S olid W aste Collection and Disposal Options v2.1 91 10/22/12 6.4.2 Net Present Value Evaluation The financial modeling conducted under this evaluation provides the capability to project and calculate the Town’s total SWSD program cost over a 30-year period while assuming the implementation of the various disposal options evaluated. This analysis assumes a 5% discount factor and includes year-over-year adjustments for inflation, capital expenditure schedule, salary projections, and other Town and scenario-specific program assumptions. The total program costs for each disposal option may then be compared in terms of present term, 2013 value. When comparing the option of direct hauling to an existing transfer station located in Durham, versus continuing disposal to the Orange County Landfill, over a 30-year period, the estimated net present values are comparable: $66 million for a program direct hauling MSW to a Durham transfer station and $68 million representing the status quo of disposal with Orange County, as depicted below in Exhibit 6-7. This analysis projects a costs savings when transitioning the Town’s existing seven (7) routes to six (6) residential collections routes on a 3-day collection schedule. Exhibit 6 -7. Net Present Value of Direct Hauling to Transfer Station (6 R outes, 3 D ays P er W eek) Comparatively, the current seven residential collection route configuration that operates 2-days per week is projected to have a net present value of $71 million to transport waste to a transfer station in Durham, as depicted in Exhibit 6-8. $66 $66 $72 $71 $69 $- $20 $40 $60 $80 $100 $120 Ne t P r e s e n t V a l u e , $ Mi l l i o n s 30-year Net Present Value, $ at 5% Discount Factor