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14 Replacement Project Analysis If the Coat Fits, Wear It The Innovative Sporting Goods Company (ISGC) was founded in 1975 in Cambridge, MA. Its founder, Andy Pratt, a mechanical engineer, had developed a sound technique of making baseball bats. Under his leadership, the company had gained national reputation. Recently, however, a new machine had been developed in the industry, which would allow manufacturers to coat the aluminum baseball bats with a special compound giving them a satin finish and making them more durable and powerful. The prototype had been presented to the respective regulatory authorities and had been approved. Upon Andy's request, the design group, had tested the new product researched the relevant cost and production process issues that a Douglas Adams, the head of and machine replacement would entail. of th $20,000 Doug reported that besides the initial price tag of $350,000 for one ese machines, users would have to incur shipping, handling, and Installation costs of $4500 and annual fixed operating costs of about per machine. Currently, the company incurs fixed operating