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Cash Flow Diagram - Example [3] A company expanded its operations with the purchase of a $10 million rolling mill in 2004 Assume that the new mill runs at peak capacity (4.375 million pounds of output per year) for 10 years Assume that a pound of output generates $9 in revenues while costing $3.90 to produce * Maintenance of the equipment is $10 million the first year and grows by $1 million per year * Finally, the mill is to be scrapped at the end of 10 years for $500.000