$ YEAR

Cost of 1 Unit 10
Maintenance Cost of Previously Build Unit 0.1 Total Demand
Cost per unit
Year 1 Demand in units 160000 Total Cost in Year 1
Standard deviation growth rate 6%
Mean growth 10 - 20% Total Revenues
Sale Price
Year 1 Selling Price 8
Growth Rate 5% Per year
Variable cost 40% of sale price Profit
Capacity Level
Discount rate 10% per year
Maximum profit is at the capacity
 1 2 3 4 5 6 7 8 9 10

160000 169600 179776 190562.6 201996.3 214116.1 226963.1 240580.8 255015.7 270316.6
10.1 10.1 10.1 10.1 10.1 10.1 10.1 10.1 10.1 10.1
1616000 1712960 1815738 1924682 2040163 2162573 2292327 2429866 2575658 2730198

1280000 1424640 1585624 1764800 1964222 2186179 2433218 2708171 3014195 3354799
8 8.4 8.82 9.261 9.72405 10.21025 10.72077 11.2568 11.81964 12.41063

-336000 -288320 -230113 -159882 -75940.51 23606.83 140890.8 278304.7 438536.1 624600.6
160000 169600 179776 190562.6 201996.3 214116.1 226963.1 240580.8 255015.7 270316.6

profit is at the capacity level of 341268.5

 11 12 13 14

286535.6 303727.8 321951.4 341268.5

10.1 10.1 10.1 10.1
2894010 3067650 3251709 3446812

3733891 4155820 4625428 5148102

13.03116 13.68271 14.36685 15.08519

839880.9 1088170 1373719 1701289

286535.6 303727.8 321951.4 341268.5