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LLC has been farming a new strain of radioactive-material-eating bacteria that the electrical utility industry can use to help dispose of its nuclear waste. Two
LLC has been farming a new strain of radioactive-material-eating bacteria that the electrical utility industry can use to help dispose of its nuclear waste. Two opposing factors affect Biotech's decision of when to harvest the bacteria. The bacteria are currently growing at a 22 percent annual rate, but due to known competition from other top firms, biotech analysts estimate that the price for the bacteria will decline according to the schedule below.
Change in Price Due to Competition If the opportunity cost of capital is 10 percent, then when should Biotech harvest the entire bacteria colony at one time? int: Compute the change in total revenue each year and recommend harvesting when the percentage change in revenue falls below the cost of Change in Price Due to Competition If the opportunity cost of capital is 10 percent, then when should Biotech harvest the entire bacteria colony at one time? int: Compute the change in total revenue each year and recommend harvesting when the percentage change in revenue falls below the cost ofStep by Step Solution
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