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Decision Making and Cost-Benefit Analysis at Ferrari Requirements: Use cost-benefit analysis techniques at Ferrari to evaluate investment decisions in new engine technology. Option Costs ($)

Decision Making and Cost-Benefit Analysis at Ferrari

Requirements:

  1. Use cost-benefit analysis techniques at Ferrari to evaluate investment decisions in new engine technology.

Option

Costs ($)

Benefits ($)

Hybrid Engine Technology

50,000,000

75,000,000

Gasoline Engine Technology

40,000,000

60,000,000

  • Analyze the costs and benefits of adopting hybrid engine technology versus traditional gasoline engines for Ferrari's sports cars.
  • Evaluate the environmental and performance advantages of hybrid engines compared to gasoline engines for Ferrari.
  • Recommend Ferrari's investment decision based on cost-benefit analysis and strategic alignment with sustainability goals.

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