Problem
A firm has installed a manufacturing line for packaging materials. The firm plans to produce 50 tons of packing peanuts at $5000 per ton annually for 5 years, and then 80 tons of packing peanuts per year at $5500 per ton for the next 5 years. What is the present worth of the expected income? The firm's minimum attractive rate of return is 18% per year.? Contributed by Hamed Kashani, Saeid Sadri, and Baabak Ashuri, Georgia Institute of Technology.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.