McDermott Company has developed a new industrial component called 1C75. The company is excited about 1C75 because it offers superior performance relative to the comparable component 5old by MeDermott's primary competitor. The competing pat sells for $1,280 and need 5 to be replaced after 2,080 hours of use. It also requires $240 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 4,160 hours of use and it requires $340 of preventive maintenance during its useful life. Required: From a value-based pricing standpoint: 1. What is the relerence value that McDermott should consider when pricing IC.75? 2. What is the differentiation value offered by IC75 relative the competitor's offering for each 4,160 hours of usage? 3. What is IC-75's economic value to the customer over its 4.160 -hour life? 4. What range of possible prices should McDermott consider when setting a price for 1C75