28. Suppose that you were in charge of deciding the initial plant size and expansion sequence for a new process to make polysyllabic acid. Suppose further that as a result of interviewing economists, consultants, existing and potential customers, etc., your company prepared the demand forecast which is shown on the following page.

a) Determine the optimum initial plant size, optimum expansion schedule, and expansion plant size given the demand forecast. For this problem, you can assume that (i) the initial plant will begin production at the start of 2020; (ii) the process to make polysyllabic acid has a process investment cost scale exponent of 0.60; and (iii) an appropriate cost of capital for this project is 15% per year. State clearly any other assumptions that you deem appropriate.