Question
FASTOUT Corporation is an automation company that invests heavily in research and development (R&D) before introducing any new machine, which are mostly innovative labour saving
FASTOUT Corporation is an automation company that invests heavily in research and development (R&D) before introducing any new machine, which are mostly innovative labour saving alternatives. Manufacturing firms in the industry are customers of FASTOUT Corporation. Recently, FASTOUT spent $130,000 to innovate an automatic food processing machine AFP20 to reduce wastage; however, the machine AFP20 is not fully ready yet for the market due to its occasional imperfection in separating residue and fine output, as reflected in a few random trial runs. Such infrequent failures require long reset time. Firms installing AFP20 may experience significant production loss during reset time. Nonetheless, due to the pressure of severe competition, FASTOUT managers are planning to introduce this machine AFP20 in the market before any new offer from competitors. The company is expecting that the final version of reliable machine AFP20-M would be available for production in four years' time.Required
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