What is the tev of new product

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Yvonne was trying to determine the True Economic Value (TEV) price for a new product that her firm is bringing to market. She knows that the best alternative to her new product has a $100 price. Her research also shows that the average customer uses her competitor's product 1,000 hours per year at a total cost of $2,000 per year. She estimates that the efficiency of her product will allow these customers to reduce use to 950 hours per year with a pro rata reduction in overall cost. In this scenario, what is the TEV of her new product?

Reference no: EM132401267

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