Final answer:
HighFlyer Airlines aims to build airplanes with increased cabin space, requiring evaluations of design changes and R&D investments based on the private rate of return and increased revenue projections.
Step-by-step explanation:
HighFlyer Airlines is considering the construction of new airplanes with increased cabin space to enhance passenger comfort and potentially sell more tickets at a premium.
The redesign process involves considering new layouts for engine and luggage placement and the overall aerodynamics of the plane.
To determine the feasibility and economic sense of these redesigns, HighFlyer Airlines has created a list of possible methods to increase cabin space and calculated their impact on operating costs and ticket sales.
These assessments help in determining the profitability of the R&D investments necessary for such improvements. Table 13.5 would provide insights into the value of these R&D projects, taking into account the minimum private rate of return they are expected to generate for HighFlyer Airlines.