A design start-up is currently using a 3-D printer that costs $800, and has an operating cost of $2 per hour. A common problem is industrial 3-D printers is heater errors due to overheating, which causes the printer to shut-down. This leads to a loss of $10,000 for the start-up each time there is a shut-down due to heater error. The probability of heater errors in the currently used 3-D printer is 10% in a year. A new 3-D printer model in the market claims that the probability of heater error is as low as 2% in a year, with an operating cost of $3 per hour. Assuming that a 3-D printer is used for a year consisting of 1500 working hours, answer the following:

(A) What is the True Economic Value of the new 3-D printer model? (

B) The start-up believes that the 2% probability of heating error for the new model is overstated. It believes that this probability is actually 5%. What is the Perceived Value of the new 3-D printer model?