Reference no: EM13631119

A window frame manufacturer is searching for ways to improve revenue from its triple- insulated sliding windows, sold primarily in the far northern areas of the United States. Alternative A is an increase in TV and radio marketing. A total of $300,000 spent now is expected to increase revenue by $60,000 per year. Alternative B requires the same investment for enhancements to the in-plant manufacturing process that will improve the temperature retention properties of the seals around each glass pane. New revenues start slowly for this alternative at an estimated $10,000 the first year, with growth of $15,000 per year as the improved product gains reputation among builders. The MARR is 8% per year, and the maximum evaluation period is 10 years for either alternative. Use both payback analysis and present worth analysis at 8% (for 10 years) to select the more economical alternative. State the reason(s) for any difference in the alternative chosen between the two analyses.