Manufacturing R Us is considering a new product line. It is expected to have an initial cost of $1,775,000 with potential upside and downside of $325,000. The annual operating expenses are most likely $35,000 but may range from $30,000 up to $70,000. The expected annual revenue is likely to be $500,000 but may be as low as $300,000 or as high as $700,000.

For a 15 year planning horizon and MARR = 20%, evaluate whether this opportunity is attractive for:

a. The most optimistic numbers.

b. The most likely numbers.

c. The most pessimistic numbers.

Use whatever method of evaluation (PW, FW, AW, IRR or ERR) you want, but be explicit on which one you are using.