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Business, 27.02.2020 02:27 zokal9795

Question 2.A company determined to expand its existing capacity for the next three years. Assume the demand for the next three years are 15, 30, and 60, respectively and the existing capacity is 8(Note, you will need to calculate the demand of increase first for each period). The cost of capacity expansion is 100 x2where x is the amount of the capacity expanded(Note that if expansion is zero, then the cost is zero, NOT 100!). Findthe optimal capacity expansion plan for the next three years using discount rate of one.

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Question 2.A company determined to expand its existing capacity for the next three years. Assume the...
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