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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
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 15% per year. All cash flows are in $1,000 units. Product Lines R1 and U4 R1 and T3 R1 and S2 R1, S2 and T3 S2 and T3 U4
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