The company is deciding between two new product lines, Line A and Line B. Line A requires an initial investment of $30,000, while Line B needs $28,000.

Yearly Cash Flows

• Year 1: Line A - $9,000; Line B - $10,000
• Year 2: Line A - $10,500; Line B - $8,000
• Year 3: Line A - $11,000; Line B - $7,500
• Year 4: Line A - $8,000; Line B - $6,000

Requirements: (a) Calculate the NPV for each product line using a discount rate of 14%. (b) Determine the IRR for each product line. (c) Discuss the acceptability of each project if the required rate of return is 10%. (d) Compute the profitability index for both projects. (e) Analyze how changes in the initial investment might alter the decision.