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shipping it to each region of the country are given in the same file. It costs $3 million (in current dollars) to build a
shipping it to each region of the country are given in the same file. It costs $3 million (in current dollars) to build a new plant, and operating each plant incurs a fixed cost (in addition to variable shipping and production costs) of $50,000 per year. A plant at Atlanta or Houston will have the capacity to produce 100,000 capaci- tors per year. Assume that future demand patterns and production costs will remain unchanged. If costs are discounted at a rate of 12% per year, how can the company minimize the net present value (NPV) of all costs associated with meeting current and future demands?
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