A financial review and cost - benefit analysis of fuel storage tank upgrades at the Navy Exchange Gas Station, Naval Postgraduate School, Monterey, California
Geldermann, Daniel F.
Gates, William R.
Nevels, Jeffrey M.
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This thesis examines the costing allocations at the Navy Exchange Gas Station, Naval Postgraduate School, Monterey California. From this a complete cost picture has been provided from which to improve cost data for future upgrade and maintenance decisions involving the facilities. This is becoming more critical in fight of both the funding reductions currently being experienced by the military services, and the growing complexity and expense of complying with increasingly stringent environmental regulations. Additionally, this study determines if three facilities upgrade options faced by the Navy Exchange are financially justified and which of them is the most desirable. This study found that the Navy Exchange costing practices are sound, and with some minor adjustments, an even higher accuracy of record keeping could be attained. To meet environmental compliance concerns, Alternative II, replacing the underground storage tanks with new ones in 1998, is the best of the three options considered. Present value 1993 costs of this alternative is $214,451 and the estimated payback is 15.5 months
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