Final answer:
A six-month delay in high-tech product development can cause a significant revenue share loss. HighFlyer Airlines should invest in R&D an amount where the expected return is greater than the 6% opportunity cost of capital.
Step-by-step explanation:
A common rule of thumb in the world of high-tech product development is that a six-month project delay can result in a significant percent loss in product revenue share.
While this exact percentage can vary depending on the market and specific industry conditions, a delay can substantially decrease the potential revenue of the product due to the fast-paced nature of technology and market dynamics.
For HighFlyer Airlines, if the opportunity cost of financial capital is 6%, the firm would need to carefully assess the potential revenues from its R&D investments against this opportunity cost to decide the appropriate amount to invest. This includes considering the time value of money, the expected rate of return from R&D, and the competitive landscape.
Essentially, the investment should be such that the expected rate of return on R&D is greater than the opportunity cost of capital.