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Q6: Calculate the Total Economic Value (TEV) of a product based on the following information: Column1 New Product Next Best Alternative Probability of system crash

Q6: Calculate the Total Economic Value (TEV) of a product based on the following information:

Column1 New Product Next Best Alternative
Probability of system crash 2% over one year 15% over one year
Cost of system crash $250,000 $250,000
Hours of Operations 2500 per year 2500 per year
Operating system cost per hour $25 $20
Price To be determined $250,000

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