Question: AssumptionProbably for High Average Demand: Ph = 6 0 % ; for low average demand : PL = 4 0 % Big Plant ( 1
AssumptionProbably for High Average Demand: Ph ; for low average demand : PL Big Plant A: a High Demand yields $ annually in cash flowb. Low Demand yields $ annually due to high costSmall Plant B: initial high demand: h $ yr for year & years Expanded: c High Demand, $from yr to for yearsd. Low Average Demand: $ for years low efficiency No Change:e: High Demand: $ for years competitionf Low Demand: $ for yearsSmall Plant with initial low demand:g: $ for yearsInvestment Cost: A large plant: ; B small plant: ; Cexpansion:
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