A company is trying to decide which of two new product lines to introduce in the coming year.The company requires a 12% return on investment.The predicted revenue and cost data for each product line follows: 
The company has a 30% tax rate and it uses the straight-line depreciation method.The present value of an annuity of 1 for 5 years at 12% is 3.6048.Compute the net present value for each piece of equipment under each of the two product lines.Which,if either of these two investments is acceptable?
Definitions:
Marginal Cost
The change in total cost that arises when the quantity produced is incremented by one unit; essentially, it is the cost of producing one more unit of a good.
Output
The quantity of goods or services produced by a firm or economy.
Total Revenue Curve
A graphical representation that shows how total revenue changes as the quantity sold of a good or service changes, holding all other factors constant.
Marginal Revenue
The increase in revenue that results from the sale of one additional unit of output.
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