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Suppose we want to choose capacity for a plant that will produce a new drug. In particular, we want to choose the capacity that maximizes

Suppose we want to choose capacity for a plant that will produce a new drug. In particular, we want to choose the capacity that maximizes discounted expected profit over the next 10 years. We have the following information:
* Demand for the drug is expected to be normally distributed ~ Normal (50,000,12,000).
* A unit of capacity costs $16 to build.
* The number of units produced will equal the demand, up to capacity limits.
* The revenue per unit is $3.70 and the cost per unit is $0.20(variable cost).
* The maintenance cost per unit of capacity is $0.40(fixed cost).
* The discount rate is 10%.
Perform a simulation assuming the plant will be designed to meet the expected demand (i.e.,50,000 units). You may use the template below to build your model:

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