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P1: Your chemical firm has a new bioplastic that it is selling which should have a market life of 10 years. The first costs of
P1: Your chemical firm has a new bioplastic that it is selling which should have a market life of 10 years. The first costs of producing this new plastic are $15.0 million. The initial raw material costs will be $4.3 million per year, with a constant 3% rate of increase per year. Production costs for labor, energy, and facility maintenance are initially $1.8 million per year, with a 2% rate of increase as the production facility ages. If revenue is constant at $11.0 million per year, what is the present worth at an interest rate of 10% ? P2: For the problem above, how fast would revenue have to rise or fall for the present worth of the project to be zero
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