Problem

How would your answer to Problem 10 change if technological improvements reduce the cost o...

How would your answer to Problem 10 change if technological improvements reduce the cost of new BG production facilities by 3% per year?

Thus a new plant built in year 1 would cost only 25 (1 -.03) = $24.25 million; a plant built in year 2 would cost $23.52 million; and so on. Assume that production costs per unit romain at $65.

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Solutions For Problems in Chapter 11