If it is decided to develop the revised version of the product, 15 million baht will be
invested in a vision system for production monitoring, 5 million baht allocated to marketing
costs, and 10 million baht allocated to develop the production system. The cost of product
development is allocated to be 6 million baht.
Company A needs MARR of X % per year.
Remark: One risk of changing a product, however, is that some existing customers will not
switch to the revised product, but instead purchase a product from a competitor.
Another uncertainty in the project is the life span the product will have on the market. In the
above, both the current product and the revised version of the product are based on a 6-year
period