Problem
Specialty Chemicals has a new plastic formulation that should have a market life of 10 years. First costs will be $15M. Initial raw materials costs will be $4.3M per year, with a constant 3% rate of increase. Production costs for labor, energy, and facility maintenance are $1.8M per year initially, with a 2% rate of increase as the facility ages. If revenue is constant at $11M per year, what is the PW at Specialty's interest rate of 10%?
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.