ABC Company is preparing to launch a new product. They are
considering three different product designs and will select only
the one product that yields the highest revenue. A feasibility
study suggest that product development, regardless of which of the
three products is selected, will cost $1,250,000 initially, which
includes all design, testing, set-up and initial operating costs.
Annual operating cost, once the selected product is placed into
production, will cost $125,000 and the net revenue for the first
year...