Question
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more
HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow HighFlyer Airlines to give passengers more comfort and sell more tickets at a higher price. However, redesigning the cabin means rethinking many other elements of the airplane as well, like the placement of engines and luggage, and the most efficient shape of the plane for moving through the air.
HighFlyer Airlines has developed a list of possible methods to increase cabin space, along with estimates of how these approaches would affect the costs of operating the plane and sales of airline tickets.Based on these estimates, the following table shows the value of R&D projects that provide at least a certain private rate of return.
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