McDermott Company developed a new industrial component called IC$-75$ that offers superior performance relative to the comparable component sold by McDermott$$s primary competitor. The competing part sells for $$1,220$ and needs to be replaced after $2,020$ hours of use. It also requires $$210$ of preventive maintenance during its useful life.

The IC$-75$s performance capabilities are similar to its competing product with two important exceptions$$it needs to be replaced after $4,040$ hours of use and it requires $$310$ of preventive maintenance during its useful life.

Required:

From a value$-$based pricing standpoint:

What is the reference value McDermott should consider when pricing IC$-75?$

What is the differentiation value offered by IC$-75$ relative the competitor$$s offering for each $4,040$ hours of usage?

What is IC$-75$s economic value to the customer over its $4,040-$hour life?

What range of possible prices should McDermott consider when setting a price for IC$-75?$