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TEMPES CORPORATION (A)
This case study describes a strategic design choice facing Tempes Corporation, a manufacturer of precision equipment for extreme sports and scientific research. The company is deciding between two designs for its 'Water Moccasin' deep-sea diving monitor: Design A, which uses traditional acrylic polymer and cadmium coating, and Design B, which utilizes a more expensive but recyclable engineering thermoplastic. The document provides detailed capital costs, operating assumptions, and financial parameters to facilitate a net present value (NPV) and internal rate of return (IRR) analysis.
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Document type: Case study