A company is trying to decide which of two new product lines to introduce in the coming year. The company requires a 12% return on investment. The predicted revenue and cost data for each product line follows: Unit sales Product B 20,000 $30 Unit sales price Direct materials Direct labor Other cash operating expenses New equipment costs Estimated useful life (no salvage) Product A 25,000 $30 $15,000 $120,000 $30,000 $2,500,000 $8,000 $80,000 $25,000 $1,500,000 5 years 5 years The company has a 30% tax rate and it uses the straight-line depreciation method. The present value of an annuity of 1 for 5 years at 12% is 3.6048. Compute the net present value for each piece of equipment under each of the two product lines. Which, if either of these two investments is acceptable