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One more question 🙂
In part d) in lifecycle analysis shouldn’t we include discount factor for calculation of lifecycle cost? (i know it’s not given but my question is more general) I think margin calculated based on cost in the question is distorted by lack of discount factor.
I’m sure discounting is the way to go – provided its used consistently an applies revenue and manufacturing costs over the life of the product and to the end-of-life costs at the end of the project.