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