Abel and Family Perfumes wants to add one or more of four new products to its current line of colognes. Historically, Abel has used a 5 year project recovery period and a MARR of 20% per year.

(a) Determine which of the four options the company should undertake on the basis of a present worth analysis, provided the total amount of investment capital available is $800,000. Use a hand solution, unless assigned otherwise.

(b) What products are selected if the investment limit is increased to $900,000? Use a spreadsheet, unless assigned otherwise. (All cash flows are in $1000 units.)

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T3 S2 R1 Product Line Investment, $ M&O cost, $/year U4 -200 -400 -500 -700 -200 -300 -400 770 -50 520 150 450 Revenue, $/year