Problem #1 (20 pts) Monroe Manufacturing owns a warehouse that has been used for storing finished goods for electro pump products. As the electro-pump product line is phasing out, the company is considering modifying the existing structure to use for manufacturing a new product line. Monroe's production engineer feels that the warehouse could be modified to handle one of two new product lines. Both product lines will be available and can be repeated with the same cost, revenue and salvage values for an indefinite period. The cost and revenue data for the two product alternatives are as follows: Product A Product B Initial cash expenditure: 110000 $140,000 $280,000 . Warehouse modification e Equipment Annual revenues Annual O&M costs Product life Equipment salvage value $240,000 $220,000 $100,000 3 years $60,000 $260,000 $160,000 6 years $90,000 At a MARR-12%, which product should be selected based on present worth analysis