Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 52

During your inquiries about alternative B from its manufacturer, you learn that this company has already produced a prototype molding machine and has sold it to a company in Germany for $3 million (U.S. dollars). Upon inquiry, you further discover that the German company already has unused capacity on the equipment for manufacturing plastic shells. The company is willing to sell time on the equipment to Innovations immediately to produce its own shells for U.S. delivery. This could allow immediate market entry into the United States. Consider this as alternative C, and develop the estimates necessary to evaluate C at the same time as alternatives A and B.