DO NOT USE EXCEL

DO NOT SOLVE BY SUMPLY GETTING THE P AND F for eahc year

SOLVE USING A, G, g rules if given gradients

Question #3 (30 Points: A small manufacturing company could expand its operation by adding a new product. Only one of the products shown below can be added. If the company uses a MARR of 14% per year and a 5-year study period, which product, if any, should the company introduce using the ROR Analysis? First Cost Annual Cost Annual Revenue Salvage Value Product 1 -500,000 -64,000 190,000 100,000 Product 2 -620,000 -40,000 220,000 180,000 Product 3 -570,000 -48,000 220,000 145,000