After extensive marketing research, Pill Medicine Ltd. Believes it can penetrate the pain reliever market. It can follow one of two strategies. The first is to manufacture a medication aimed at relieving headache pain. The second strategy is to make a pill designed to relieve headache and arthritis pain. Both products would be introduced at a price of $8.35 per package in real terms. The headache and arthritis remedy would probably sell 4.5 million packages per year, while the headache only medication is projected to sell 3 million packages per year. Cash costs of production in the first year are expected to be $4.15 per package in real terms for the headache-only brand. Production costs are expected to be $4.65 in real terms for the headache and arthritis pill. All prices and costs are expected to rise at the general inflation rate of 2%. Either strategy would require further investment in plant. The headache-only pill could be produced using equipment that would cost $23 million, last three years, and have no resale value. The machinery required to produce the headache and arthritis remedy would cost $32 million and last three years. At this time the firm would be able to sell it for $1 million in real terms. The production machinery would need to be replaced every three years at constant real costs. Suppose that for both projects the firm will use a CCA rate of 25%. The firm faces a corporate tax rate of 35%. Management believes the appropriate real discount rate is 7%. Which pain reliever should the company produce?