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Business, 18.03.2021 22:50 brandyleemom3

An oil company is considering the optimal timing for the construction of new refineries. From past experience, each doubling of the size of a refinery at a single location results in an increase in the construction costs of about 68.2%. Furthermore, a plant size of 10,000 barrels per day costs $6 million. Assume that the demand for the oil is increasing at a constant rate of one million barrels yearly and the discount rate for future costs is 15%. Find the values of k and a assuming a relationship of the form f(y)

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