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Tavis Robotics Corporation has developed a new robot - model FI - 7 3 - that has been designed to outperform a competitor's best -

Tavis Robotics Corporation has developed a new robot-model FI-73-that has been designed to outperform a competitor's best-selling robot. The competitor's product has a useful life of 10,000 hours of service, has operating costs that average $4.90 per hour, and sells for $115,000. In contrast, model Fl-73 has a useful life of 30,000 hours of service and its operating cost is $2.90 per hour. Tavis has not yet established a selling price for model FI-73.
From a value-based pricing standpoint what is FI-73's economic value to the customer over its 30,000 hour useful life?
Multiple Choice
$405,000
$167,000
$205,000
$290,000
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