Question: McDermott Company developed a new industrial component called IC - 7 5 that offers superior performance relative to the comparable component sold by McDermott s

McDermott Company developed a new industrial component called IC-75 that offers superior performance relative to the comparable component sold by McDermotts primary competitor. The competing part sells for $1,400 and needs to be replaced after 2,200 hours of use. It also requires $300 of preventive maintenance during its useful life.
The IC-75s performance capabilities are similar to its competing product with two important exceptionsit needs to be replaced after 4,400 hours of use and it requires $400 of preventive maintenance during its useful life.

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