Your client is a company that has been cited with a notice of violation for discharging toxic chemicals into the municipal sewer system. The regulatory authorities are requiring that the company develop a waste management plan to address the violations related to the manufacturing process. A preliminary assessment concludes that the toxic chemicals are necessary because of old and outdated equipment. Management wants to get back into compliance, spending as little capital as possible. They believe that adding additional pollution control at the end of the process is a reasonable solution. You believe that if the company spends additional capital, the equipment can be updated, eliminating the need for toxic chemicals. Neither solution yields a better quality product.
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