A$5-1($Algo$)$ Norwegian Satellite Development Company... Norwegian Satellite Development Company $($NSDC$)$ Cost Estimates for World Satellite Telephone Exchange Project NSDC has a contract to produce satellites to support a worldwide telephone system $($for Alaska Telecom, Inc.$)$ that allows individuals to use a single, portable telephone in any location on earth to call in and outNSDC will develop and produce the $6$ units. NSDC has estimated that the R&D costs will be NOK $($Norwegian Krone$)11,000,000.$ Material costs are expected to be NOK $5,000,000.$ They have estimated that the design and production of the first satellite will require $90,000$ labor hours, and an $80$ percent improvement curve is expected $.$ Skilled labor cost is NOK $360$ per hour. Desired profit for all projects is $23$ percent of total costs.