A small manufacturing company expects to expand its operation by adding new product lines. Any or all of four new lines can be added. If the company uses a MARR of 15% per year and a 5-year project period, which products, if any, should the company manufacture? Monetary terms are in $1000.

Product 1 2 3 4 Initial cost, $ 340 500 570 620 Annual cost, $/year 70 64 48 40 Annual savings, $/year 180 190 220 205