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by jklein11 4091 days ago
From an academic finance perspective:

Assuming access to capital, companies should invest in all projects with a positive Net Present Value( the net of money coming in discounted for inflation and money going out, including interest expenses) greater than zero. Simply put... if a project makes money you should invest in it if it doesn't you should not.

Taking away the assumption of access to capital, companies should take projects with the highest Internal Rate of Return( essentially the return on investment) for a project.

It seems that you do not want to/are not capable of using external capital(ie taking a loan or venture capital) so we will consider the IRR method of choosing projects.

If you will receive a greater return from building this product than extending another line of your business, then that is the right thing to do with the money.