Product Lines R1 S2 T3 U4 First cost, $ - 200 -400 - 500 - 700 M&O cost, $/year -50 - 200 - 300 -400 Revenue, $/year 150 450 520 770

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A small manufacturing company is considering the addition of one or more of four new product lines. If the total amount of investment capital available for new ventures is $800,000, which one(s) should the company undertake on the basis of a present worth analysis? Assume the company uses a 5-year project recovery period and a MARR of 20% per year. All cash flows are in $1000 units.

Product Lines
R1
S2
T3
U4
First cost, $
- 200
-400
- 500
- 700
M&O cost, $/year
-50
- 200
- 300
-400
Revenue, $/year
150
450
520
770
Transcribed Image Text:Product Lines R1 S2 T3 U4 First cost, $ - 200 -400 - 500 - 700 M&O cost, $/year -50 - 200 - 300 -400 Revenue, $/year 150 450 520 770
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