A small manufacturing company could expand its operation by adding new products. Any or all of the products shown below can be added. If the company uses a MARR of 15% per year and a 5-year project period, which products, if any, should the company introduce?
 FIGURE 1.png)
Proposals are independent; compare each against DN only
Product 1: 0 = -340,000 + (180,000 – 70,000)(P/A,i*,5)
i* = 18.52% > MARR = 15% Accept
Product 2: 0 = -500,000 + (190,000 - 64,000)(P/A,i*,5)
i* = 8.23% < MARR = 15% Reject
Product 3: 0 = -570,000 + (220,000 - 48,000)(P/A,i*,5)
i* = 15.49% > MARR = 15% Accept
Product 4: 0 = -620,000 + (205,000 - 40,000)(P/A,i*,5)
i* = 10.35% < MARR = 15% Reject
Company should introduce products 1 and 3
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