Question: Do not paste other answers that are in Chegg here Assume the demand for a companys drug Wozac during the current year is 50,000 and

Do not paste other answers that are in Chegg here

Assume the demand for a companys drug Wozac during the current year is 50,000 and assume demand will grow at 5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost $16x (a one-time cost). Each unit of Wozac is sold for $3. Each unit of Wozac produced incurs a variable production cost of $0.20. It costs $0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years (consider an interest rate of 10% in your analysis)

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