A Japanese steel manufacturer is considering expanding operations. From experience, it estimates that new capacity additions obey the law f(y) = .00345y.51,where the cost f(y) is measured in millions of dollars and y is measured in tons of steel produced. If the demand for steel is assumed to grow at the constant rate of 8,000 tons per year and future costs are discounted using a 10 percent discount rate, what is the optimal number of years between new plant openings?
A Japanese steel manufacturer is considering expanding operations. From experience, it estimates that new capacity additions obey the law f(y) = .00345y.51,where the cost f(y) is measured in millions of dollars and y is measured in tons of steel produced. If the demand for steel is assumed to grow at the constant rate of 8,000 tons per year and future costs are discounted using a 10 percent discount rate, what is the optimal number of years between new plant openings?
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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A Japanese steel manufacturer is considering expanding operations. From experience, it estimates that new capacity additions obey the law
f(y) = .00345y.51,
where the cost f(y) is measured in millions of dollars and y is measured in tons of steel produced. If the demand for steel is assumed to grow at the constant rate of 8,000 tons per year and future costs are discounted using a 10 percent discount rate, what is the optimal number of years between new plant openings?
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