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True, but given the vast write-off of development costs, this falls short of an argument for the economic viability of the B model project, which is the issue h
by mannykannot 6y ago
True, but given the vast write-off of development costs, this falls short of an argument for the economic viability of the B model project, which is the issue here.
- jacobreg 6y agoI think its reasonable to write off development costs, given that it was the first of its kind. This is why we have government funded research: to create technologies that would be too risky for any private company to pursue. The question shouldn't be "is it profitable to create the first one?", its "once we've solved the hard problems, can the industry be profitable?".
- mannykannot 6y ago> The question shouldn't be "is it profitable to create the first one?", its "once we've solved the hard problems, can the industry be profitable?". Given that the original project ran into delays and overages throughout, it strains credibility to propose that, starting with the 'B', all the hard problems would be in the past, and that performance would henceforward live up to the promises.