Question
A company plans to scale up production of a good. The inventory currently contains 1000 units, each valued at 10 pounds. The plan involves adding
A company plans to scale up production of a good. The inventory currently contains 1000 units, each valued at 10 pounds. The plan involves adding 100 units to the inventory in each of the next 3 years and maintaining a 1300 unit inventory thereafter. Please indicate the right cash flow profile associated to this plan
A. 10000 pounds in year 0, 11000 pounds in year 1, 12000 pounds in year 2, 13000 in year 3 and thereafter.
B.1000 pounds in year 1, 1000 pounds in year 2, 1000 pounds in year 3 and 0 pounds thereafter.
C. 1000 pounds in year 1, 2000 pounds in year 2, 3000 pounds in year 3 , and thereafter.
D. 1000 pounds in year 1 , 2000 pounds in year 2, 3000 pounds in year 3, -3000 pounds in year 4, and 0 pounds thereafter.
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