Old capacity 325

Discount factor 12%

Growth Maintain

Cost of Average Average

Size of new pretax gross market net profit gross market
market capacity expense price share capacity or loss DCF price share capacity
1973 752 900 300 540 35% 350 10347 9217 555 35% 340
1974 774 927 390 640 40% 375 17073 13547 665 40% 350
1975 798 955 460 750 47% 400 32684 23101 760 45% 360
1976 822 983 540 880 47% 421 47662 30007 890 45% 370
1977 846 1013 580 950 51% 443 60727 34056 955 45% 381
1978 872 1043 620 1010 52% 475 58582 29264 1015 45% 392
1979 898 1075 660 1070 52% 505 67306 29950 1070 45% 404
1980 925 1107 690 1130 55% 530 88727 35169 1120 45% 416
1981 952 1140 710 1190 58% 552 112739 39805 1170 45% 428
1982 981 1174 740 1250 59% 579 121797 38306 1210 45% 441
1983 1010 1210 770 1310 61% 616 128231 35924 1270 45% 455
1984 1041 1246 810 1370 62% 645 151812 37885 1320 45% 468
1985 1072 1283 850 1430 64% 685 155602 34589 1370 45% 482
390821

Difference 0
Maintain

net profit
or loss DCF
21400 19063
35003 27773
46470 32844
57492 36196
63094 35383
69126 34532
73254 32597
79790 31626
88793 31351
92628 29132
101230 28360
108035 26960
112479 25003
390821