10 . which has exceeded 22% each of the period. His annual pay raises are determined by his division's return on investment R year last three years. He has computed the cost and revenue estimates for each product as follows has computed the cost and revenue estimates for each product as follows 25 Cost of Annual 5 86,000 66,000 3. Calculate the internal rate of r for each product index for each product the project the simple rate of return for each product 6a For each measure. identify 6b. Based on the simple rate of return, Lou Barlow would likely Req s Req 3 Reg 6A Rea 2 years 10 to manufacture and sell one of two new products for a five- has exceeded 22% each ofthe by his year petiod His He has computed the cost and revenue estimates for each product as follows Cost of 6,00 300,00 ndex for each product the project Product A or Product B is preferred. 6b Based on the simple rate of return, Lou Barlow would likely Rea 64 Req 3 10 Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a year period His annual pay ases are determined by his division's return on investment RO which has exceeded 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows five- 25 points Initial Cost of Annual revenues and costs Sales revenues 68,000 %108,000 $ 86,000 66,800 The company's discount rate is 20% Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor using tables Peteences L Calculate the payback period for each product. 2 Calculate the net value for each product the internal rate of return for each product. he project index for each product 5. Calculate the simple rate of return for each product 6a. For each measure, identify whether Product A or Product B is preferred 6b. Based on the simple rate of return, Lou Barlow would likely Rea 5 Req 6AReq 68 Req 3 be as 12.3%.) Req 2 Req 4 ) Ned Prex 10 of 10 O Type here to search 10 revenue estimates for each product as follows porns Annual 380,ee0 460,eee $ 68,000 % 108,000 Click here to view Exhilbit 13B-1 and Exhibit 138-2, to determine the appropriate discount factor using tables index for each product the project Product A or Product B is preferred 6b. Based on the simple rate of return, Lou Barlow would likely Rea 68 10 last three years. He has c the cost and revenue estimates for each product as follows 25 Anrual The company's discount rate is 20%. Click here to view Exhiblt 138-1 and the project pr ndex for each product 6a. For each measure on the simple rate of return, Lou Barlow would likely Req JAReq 5B Red 4 Homew 10 ufacture and sell one of two Lou Barlow, a divisional manager for Sage Company, has an opportunity to man e and sell one of two new products for a five s retum on investment (ROD ar period. His annual pay raises are determined by hes three years. He has computed the cost and revenue estimates for each product as follows 25 points Cost of Annual revenues and costsi s 170,09o $286,ee0 $ 68,00e 108,00 S86,eee 66,000 Print The company's discount rate is 20%. the internal rate of return for each product 4. Calculate the project profitability index for each product 6a. For each measure. identify whether Product A or Product B is preferred 6b. Based on the simple rate of return, Lou Barlow would likey Rea 6A 899 Reg 5 Req 2