Wright Aircraft is the global leading builder of long-haul jet aircraft for civilian aviation.
Management expects the company to maintain its leadership for the foreseeable future.
Wright is considering two projects to develop an improved engine control system to
to improve fuel utilization (an important factor in airlines' aircraft purchase decisions).
Project Lindbergh utilizes a revolutionary technology to increase fuel utilization 15%.
Project Lindbergh's system can be used on all airline aircraft, whether purchased from Wright
or its competitors, and on Wright's next product generation.
Project Post utilizes an existing technology that promises to increase fuel utilization 5%.
Project Post's system can be used on Wright aircraft only.
What decision should Wright's management make? Why?

000s of 3s) R&D Phase $7.500) (s6 $3.500) ($1 $60.000 $125.000 175,000 $235.000 Probability of Techical Success 35% 55% Stage Gate 1-End of Yeer Satge Gate 2- End of Year4 Project Post 1 Cesh Flows $5,500) $1 500) 10,000 $20,000 $25,000 $35,000 $45,000 Probsbility of R&D Success (1 stage gate end of Year 2 60% 000s of 3s) R&D Phase $7.500) (s6 $3.500) ($1 $60.000 $125.000 175,000 $235.000 Probability of Techical Success 35% 55% Stage Gate 1-End of Yeer Satge Gate 2- End of Year4 Project Post 1 Cesh Flows $5,500) $1 500) 10,000 $20,000 $25,000 $35,000 $45,000 Probsbility of R&D Success (1 stage gate end of Year 2 60%