A small scale industry thinks that it will produce 10,000 tons of metal during the coming year.

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A small scale industry thinks that it will produce 10,000 tons of metal during the coming year. If the processes are controlled properly then the metal is going to increase 5% per year thereafter for the next 6 years. Profit per ton of metal is $14 for years 1–7. If the industry earns 15% per year on this capital what is the future equivalent of the industries cash flows at the EOY seven?

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