ALL required parts to fully answer the question.

HERE is the remaining tables with numbers

7b-1

7B-2

ii

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: The company's discount rate is 14%. Click here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Based on the simple rate of return, Lou Barlow would likely: \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline eriods & 4% & 5% & 68. & 76 & 8% & 96 & 10% & 11% & 12% & 13% & W\% & 15% & $6% & 17% & 185 & 195 & 20% & 215 & m6 & & 245 & 25% \\ \hline 1 & 0.962 & 0952 & 0943 & 0.935 & 0926 & 0.917 & 0909 & 0901 & 0893 & 0885 & 0.877 & 0870 & 0862 & 0.855 & 0847 & 0840 & 0.833 & 0826 & 0820 & 0813 & 0805 & 0800 \\ \hline 2 & 0.925 & 0907 & 0.890 & 0873 & 0857 & 0842 & 0.826 & 0.812 & 0797 & 0783 & 0769 & 0756 & 0743 & 0731 & 0718 & 0706 & 0694 & 0683 & 0672 & 0661 & 0650 & 0640 \\ \hline 3 & 0889 & 0.864 & 0.840 & 0.816 & 0794 & 0.72 & 0751 & 0731 & 0712 & 0693 & 0.675 & 0.658 & 0641 & 0624 & 0609 & 0593 & 0579 & 0564 & 0551 & 0537 & 0524 & 0512 \\ \hline 4 & 0855 & 0.823 & 0792 & 0763 & 0735 & 0708 & 0683 & 0659 & 0636 & 0613 & 0592 & 0572 & 0.552 & 0.534 & 0516 & 0499 & 0482 & 0467 & 0451 & 0437 & 0423 & 0.450 \\ \hline 5 & 0.822 & 0784 & 0 & 0713 & 0681 & 0650 & 0621 & 0593 & 0567 & & 0.519 & 0.497 & 0476 & 0456 & 0.437 & 0.419 & 0.402 & 0386 & 0370 & 0355 & 0341 & 0328 \\ \hline 6 & 0790 & 0746 & 0705 & 0.666 & 0630 & 0596 & 0564 & 0535 & 0507 & 480 & 0456 & 0.432 & 0410 & 0.390 & 0370 & 0352 & 0335 & 0319 & 0303 & 0.289 & 0275 & 0262 \\ \hline 7 & 0760 & 071 & 0665 & 0.623 & 0583 & 0547 & 0513 & 0482 & 0.452 & 0425 & 0400 & 0376 & 0.354 & 0333 & 0.314 & 0296 & 0.279 & 0263. & 0249 & 0.235 & 0m & 0210 \\ \hline 8 & 0731 & 0.67 & 0.627 & 0582 & 0540 & 0.502 & 0467 & 0.434 & 0.404 & 0376 & 0351 & 0327 & 0305 & 0 & 0266 & 0249 & 0233 & 0.218 & 0204 & 0191 & 0179 & 0168 \\ \hline 9 & 0703 & 0645 & 0592 & 544 & 0500 & 0460 & 0424 & 0391 & 0361 & 0333 & 0308 & 0284 & 0263 & 0.243 & 0.225 & 0209 & 0194 & 0180 & 0x & 65. & 014 & 0134 \\ \hline 10 & 0676 & 0.614 & 8 & 508 & 0463 & 422 & 0.386 & 0352 & 0322 & 0295 & 0.270 & 0247 & 0227 & 0208 & 0 & & & & & & & 107 \\ \hline 11 & 650 & 585 & 1527 & 475 & E & 188 & ) & 0 & 7 & 1 & 37 & 0215 & 019 & 01 & 0 & 01 & 01 & 012 & 01 & 0503 & 94 & 086 \\ \hline 12 & 0.625 & 0557 & 0.497 & 0444 & 1397 & 1356 & 0.319 & & 0 & 1 & 0.208 & & & & & & & , & 0 & 3 & 0 & 0069 \\ \hline 13 & 0601 & 0530 & 0469 & 0415 & 368 & 1326 & 0.290 & 0 & 0.229 & 204 & 01 & 3) & . & 0130 & 0116 & 01 & 0093 & 0084 & 0075 & 0068 & 0061 & 0055 \\ \hline 14 & 0.577 & 0505 & 0.442 & 0388 & & & 3 & 0 & 0.205 & & & & & & 99 & & 8 & 9 & 00 & 5 & 19 & 0044 \\ \hline 15 & 0555 & 0481 & 0.417 & 0362 & 0315 & 75 & 9 & 09 & 0 & 80 & . & 0123 & 108 & 0095 & 0084 & 0074 & 0065 & 0051 & 0051 & 0045 & 0040 & 0035 \\ \hline 16 & 0534 & 0.458 & 0394 & 0339 & 0292 & 252 & 0.218 & 0188 & 16 & 1 & 0123 & 7 & 0093 & 0081 & 0071 & 0062 & 0054 & 0047 & 0042 & 0.036 & 0032 & 0028 \\ \hline 17 & 0.513 & 0.436 & 037 & 0317 & 0.270 & 231 & 0198 & 0170 & 019 & 0125 & 0108 & 093 & 80 & 0069 & 0060 & 0052 & 0045 & 0.039 & 0034 & 0030 & 0.026 & 0023 \\ \hline 18 & & & 50 & 0.296 & 0250 & 0212 & 0.380 & 0153 & 0130 & 0 & 0095 & 0081 & 0069 & 0059 & 0.051 & 0044 & 0038 & 0.032 & 0028 & 0024 & 0.021 & 0018 \\ \hline 19 & 0475 & 0396 & 0.331 & 0.277 & 0232 & 0194 & 0164 & 0138 & 0116 & 0098 & 0083 & 0070 & 0060 & 0051 & 0.043 & 0037 & 0031 & 0027 & 0023 & 0020 & 0018 & 0014 \\ \hline 20 & 0.456 & 0377 & 0312 & 0258 & 0.215 & 0.178 & o & & & & 0.073 & 0061 & 0051 & 0043 & 0037 & 0031 & 0026 & 0022 & 009 & 00% & 0014 & 0012 \\ \hline 21 & 0439 & 0359 & 0294 & 0242 & 019 & & & & & & 644 & 0053 & 0044 & 0.037 & 0031 & 0026 & 0.022 & 0018 & 0015 & 0013 & 0011 & 0009 \\ \hline 22 & 0.422 & 0342 & & & 0184 & 150 & 0123 & 0.101 & 0.083 & 0068 & 0056 & 0.046 & 0038 & 0032 & 0026 & 0.022 & 0.018 & 0015 & 0.013 & & 0009 & 0007 \\ \hline 23 & 0406 & 0326 & 0.262 & 0.211 & 0170 & 0138 & 0112 & 0091 & & 0060 & 0.049 & 0040 & 0033 & 0027 & 0022 & 0018 & 0015 & 0012 & 0010 & 8009 & 0007 & 0006 \\ \hline 24 & 0390 & 0310 & 0247 & 0197 & 0158 & 126 & 0102 & 0082 & 0066 & 0053 & 0.043 & 0035 & 0028 & 0023 & 0019 & 0015 & 0.013 & 0010 & 0008 & 0.007 & 0006 & 0005 \\ \hline 25 & 0375 & 0.29 & 0.233 & 0184 & 0146 & 0116 & 0092 & 0074 & 0059 & 0047 & 0,038 & 0030 & 0024 & 0020 & 0016 & 0.013 & 0010 & 0009 & 0007 & 0006 & 0005 & 0004 \\ \hline 26 & 0361 & 0.281 & 0220 & 017 & & 106 & 0084 & 0066 & 0.053 & 042 & & & 0021 & 0017 & 0014 & 0.0H & 0.009 & 0007 & 0.006 & 0005 & 0,004 & 0003 \\ \hline 27 & 0347 & 0.268 & 0207 & 0161 & 0125 & 098 & 0076 & 0060 & 0.047 & 0037 & 0029 & 0023 & 0018 & 0014 & 0011 & 0009 & 0007 & 0006 & 0005 & 0.004 & 0003 & 0002 \\ \hline 28 & 0333 & 0255 & 0196 & 0150 & 0116 & 0090 & 0069 & 0054 & 0.042 & 0033 & 0026 & 0020 & 0016 & 0012 & 0010 & 0.008 & 0006 & 0005 & 0004 & 0003 & 0002 & 0.002 \\ \hline 29 & 0321 & 0.243 & 0185 & 0141 & 0.107 & 0082 & 0063 & 0048 & 0.037 & 0029 & 0022 & 0017 & 0014 & 0011 & 0008 & 0005 & 0005 & 0004 & 0003 & 0002 & 0002 & 0.002 \\ \hline 30 & 0308 & 0.231 & 0174 & 0131 & 0099 & 0.075 & 0057 & 0044 & 0033 & 0026 & 0020 & 0015 & 0012 & 0009 & 0007 & 0.005 & 0004 & 0003 & 0.003 & 0002 & 0,002 & 0001 \\ \hline 40 & 0208 & 0142 & 0.097 & 0067 & 0046 & 0032 & 0022 & 0015 & 0011 & 0.008 & 0005 & 0004 & 0003 & 0002 & 0001 & 0001 & 0001 & 0000 & 0.000 & 0000 & 0000 & 0000 \\ \hline \end{tabular} Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your answers to 1 decimal place f.e. 0.123 should be considered as 12.3%. The company's discount rate is 14%. Click here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount foctor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the simple rate of retum for each product. (Round your answers to 1 decimal place i.e. 0.123 should be considered as 12.3% ) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Based on the simple rate of return, Lou Barlow would likely: Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6 b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your answers to 1 decimal place f.e. 0.123 should be considered as 12.3%. EXHierr 78-2 Present Value of an Annuity of $1 in Arrears, 71[1a+r21] \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline enods & 45 & 58 & & 76 & 8% & 95 & 108 & & 128 & 13% & & 158 & 165 & 17x & 18% & 185 & 205 & 2n & m & 234 & 248 & 258 \\ \hline 1 & 0962 & 0952 & 0943 & 0935 & 0926 & 0917 & 0909 & 0901 & 0893 & 0885 & 087 & 0870 & 0.862 & 0855 & 0847 & 0840 & 0833 & 0826 & 0820 & 0813 & 0805 & 0800 \\ \hline 2 & 1886 & 1859 & 1833 & 1808 & 1783 & 1759 & 1736 & 173 & 1690 & 1668 & 1647 & 1626 & 1605 & 1585 & 1565 & 1547 & 1528 & 1509 & 1492 & 1474 & 1457 & 140 \\ \hline 3 & 2775 & 2723 & 2673 & 2624 & 25n & 2531 & 2487 & 2444 & 2402 & 2361 & 2322 & 2283 & 2246 & 2210 & 2124 & 2140 & 2106 & 2074 & 2042 & 2011 & 1981 & 1952 \\ \hline 4 & 3630 & 3546 & 3465 & 3387 & 3312 & 3240 & 3170 & 3102 & 3037 & 2974 & & 2855 & 2798 & 2743 & 2690 & 2639 & 2589 & 2540 & 2494 & 2408 & & \\ \hline 5 & 4452 & 4329 & 4212 & 4100 & 3993 & 3890 & 3791 & 3696 & 3605 & 3517 & 3433 & 3352 & 3274 & 3199 & & 3058 & 2991 & 2926 & 2864 & 503 & & \\ \hline 6 & 5242 & 5076 & 4917 & 767 & 67 & 4486 & 4355 & 4231 & 411 & 399 & 3889 & 3784 & 3685 & 3589 & 3498 & 34 & 3326 & 3245 & 3167 & 3092 & 3020 & 2951 \\ \hline 7 & 6002 & 5786 & 5582 & 5.389 & 206 & 033 & 4868 & 4712 & 4564 & 4423 & 4288 & 4. 60 & 4039 & 3922 & & 3 & 3605 & 3508 & 3416 & 3321 & & \\ \hline 8 & 6733 & 6.463 & 6.210 & 5971 & 5747 & 35 & 5335 & 5166 & 4968 & 4799 & 4639 & 4487 & 4344 & 42 & 4078 & 3954 & 3837 & 3726 & 3 & 18 & 21 & 3329 \\ \hline 9 & 7435 & 7108 & 6802 & 50 & 6247 & 5995 & 5759 & 5537 & & 5132 & 4946 & 4m & 4607 & 46 & 33 & 4 & 1 & 39 & 3785 & 367 & 3566 & \\ \hline 10 & 8111 & 7722 & 7360 & 1024 & 6710 & 418 & 61 & 5889 & 5650 & 5426 & 5216 & 5019 & 4833 & 4659 & & 4 & 4192 & 4054 & 3923 & 3799 & 3682 & \\ \hline 11 & 760 & 8306 & 7887 & 7000 & & 805 & & 6207 & 5 & 568 & 5453 & 5234 & 5029 & 4806 & 4656 & 4486 & 4327 & 4m & 4035 & 3902 & 37 & 56 \\ \hline 12 & 9385 & 8863 & 4 & 943 & 7536 & & & 6492 & 6 & 59 & 5660 & 5421 & 58 & 4 & 4793 & & 19 & 4278 & 4 & 3985 & 3851 & 25 \\ \hline 13 & 9986 & 94 & & 8358 & & 748 & 710 & 6750 & 6424 & & 5842 & 5583 & 5342 & 5 & & 415 & 4533 & 4362 & 4203 & 4053 & 12 & 30 \\ \hline 14 & 10.563 & 9899 & 9295 & 8745 & & & . & 6982 & 8 & 6302 & 6002 & 5724 & 5468 & & & 4802 & 46 & 4432 & 4265 & 4108 & 3962 & 3824 \\ \hline 15 & 118 & 10380 & 972 & 9108 & & & W & 7191 & 68 & 64 & 614 & 5847 & 5575 & 5324 & 92 & 48 & 5 & 89 & 4315 & & 4001 & 3859 \\ \hline 16 & 11652 & 838 & 10106 & 447 & & & & & & & 6265 & 5954 & 5668 & 5405 & & 4938 & 4730 & 4536 & 1 & & & \\ \hline 17 & 12166 & & 10477 & 763 & & 8 & 8022 & 7549 & 7120 & 6729 & 6373 & & & & 5m2 & 4990 & 4775 & 4576 & 4391 & 4219 & 4059 & 3910 \\ \hline 18 & 12.659 & 1690 & 08 & & & & & 7702 & 7250 & 6840 & 6467 & 6128 & 5.818 & 5 & 527 & 5033 & 4812 & 4608 & 4419 & & & 3928 \\ \hline 19 & 13134 & 2085 & 11158 & 10336 & 9604 & 950 & 8365 & 7839 & 7366 & 6938 & 6550 & & & & & & 4843 & 4635 & 4482 & 4263 & 4097 & 3942 \\ \hline 20 & 13590 & 2462 & 11470 & 10.594 & 9818 & 9129 & 8514 & 7963 & 7469 & 7025 & 6623 & 6259 & 5929 & 5628 & 3 & & & & & 4279 & . & 954 \\ \hline 21 & , & & 11764 & 836 & noon & 92 & 8649 & 8075 & 7562 & 7902 & 6687 & 631 & 5973 & 5665 & 5384 & 5127 & & & & 92 & 4 & 63 \\ \hline 22 & & 13 & & & & & & & 7645 & 7100 & 6743 & 6359 & 6011 & 56% & 5410 & 5169 & 4909 & 4690 & 4.488 & 4302 & 4130 & 10 \\ \hline 23 & 857 & 489 & 3 & & wo. & 80 & & 6 & 77 & 7230 & 6792 & 6399 & 6044 & 5723 & 5432 & 567 & 4925 & 4703 & 4499 & 4 & 9 & 76 \\ \hline 24 & 15.247 & 13799 & 12550 & & & 9707 & & 8348 & 7784 & 7283 & 6835 & 6434 & 6073 & 5745 & 5451 & 5+82 & 4937 & 473 & 4507 & 438 & 4:43 & 3981 \\ \hline 25 & 15622 & 094 & 12783 & 11654 & 10675 & 9873 & 9071 & 8422 & 7843 & 7330 & 6873 & 6464 & 6097 & 5766 & 5467 & 5195 & 4948 & 4721 & 454 & 4323 & & 3985 \\ \hline 26 & & 4375 & & & & & & 84 & 78 & & 6906 & 6 & 6 & 57 & & 5206 & & 4728 & 4520 & 4328 & 4851 & 3968 \\ \hline 27 & 16330 & 14643 & 13211 & 1987 & & & 237 & 8548 & 7943. & 7409 & 6935 & 6514 & 6136 & 5798 & 5492 & 5215 & 4964 & 4734 & 4524 & 4332 & 4 & 3990 \\ \hline 28 & 76663 & 898 & 3406 & 137 & 051 & 10116 & 9307 & 8602 & 7984 & 7441 & 6.561 & 6534 & 6152 & 5810 & 5502 & 5223 & 4970 & 4739 & 4528 & 4335 & 4157 & 3992 \\ \hline 29 & 16984 & 15141 & 3591 & & & & 9370 & 8650 & 8022 & 7470 & 6983 & 6551 & 6166 & 5820 & 5510 & 5229 & 4975 & 4743 & 4531 & 4337 & 459 & 3994 \\ \hline 30 & 17292 & 15372 & 13765 & 12409 & 11258 & 10274 & 9427 & 8694 & 8055 & 7496 & 7003 & 6.566 & 617 & 5829 & 5517 & 5.235 & 4979 & 4745 & 4534 & 4339 & 450 & 3995 \\ \hline 0 & 793 & 1159 & 046 & 3332 & 1925 & 10757 & 9779 & 8951 & 8244 & 7634 & n0s & 6642 & 6.233 & 5877 & 5548 & 5258 & 4991 & 4750 & 454 & 4347 & 4166 & 3999 \\ \hline \end{tabular} The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6 b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) The company's discount rate is 14%. Click here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount foctor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the simple rate of retum for each product. (Round your answers to 1 decimal place i.e. 0.123 should be considered as 12.3% ) The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline eriods & 4% & 5% & 68. & 76 & 8% & 96 & 10% & 11% & 12% & 13% & W\% & 15% & $6% & 17% & 185 & 195 & 20% & 215 & m6 & & 245 & 25% \\ \hline 1 & 0.962 & 0952 & 0943 & 0.935 & 0926 & 0.917 & 0909 & 0901 & 0893 & 0885 & 0.877 & 0870 & 0862 & 0.855 & 0847 & 0840 & 0.833 & 0826 & 0820 & 0813 & 0805 & 0800 \\ \hline 2 & 0.925 & 0907 & 0.890 & 0873 & 0857 & 0842 & 0.826 & 0.812 & 0797 & 0783 & 0769 & 0756 & 0743 & 0731 & 0718 & 0706 & 0694 & 0683 & 0672 & 0661 & 0650 & 0640 \\ \hline 3 & 0889 & 0.864 & 0.840 & 0.816 & 0794 & 0.72 & 0751 & 0731 & 0712 & 0693 & 0.675 & 0.658 & 0641 & 0624 & 0609 & 0593 & 0579 & 0564 & 0551 & 0537 & 0524 & 0512 \\ \hline 4 & 0855 & 0.823 & 0792 & 0763 & 0735 & 0708 & 0683 & 0659 & 0636 & 0613 & 0592 & 0572 & 0.552 & 0.534 & 0516 & 0499 & 0482 & 0467 & 0451 & 0437 & 0423 & 0.450 \\ \hline 5 & 0.822 & 0784 & 0 & 0713 & 0681 & 0650 & 0621 & 0593 & 0567 & & 0.519 & 0.497 & 0476 & 0456 & 0.437 & 0.419 & 0.402 & 0386 & 0370 & 0355 & 0341 & 0328 \\ \hline 6 & 0790 & 0746 & 0705 & 0.666 & 0630 & 0596 & 0564 & 0535 & 0507 & 480 & 0456 & 0.432 & 0410 & 0.390 & 0370 & 0352 & 0335 & 0319 & 0303 & 0.289 & 0275 & 0262 \\ \hline 7 & 0760 & 071 & 0665 & 0.623 & 0583 & 0547 & 0513 & 0482 & 0.452 & 0425 & 0400 & 0376 & 0.354 & 0333 & 0.314 & 0296 & 0.279 & 0263. & 0249 & 0.235 & 0m & 0210 \\ \hline 8 & 0731 & 0.67 & 0.627 & 0582 & 0540 & 0.502 & 0467 & 0.434 & 0.404 & 0376 & 0351 & 0327 & 0305 & 0 & 0266 & 0249 & 0233 & 0.218 & 0204 & 0191 & 0179 & 0168 \\ \hline 9 & 0703 & 0645 & 0592 & 544 & 0500 & 0460 & 0424 & 0391 & 0361 & 0333 & 0308 & 0284 & 0263 & 0.243 & 0.225 & 0209 & 0194 & 0180 & 0x & 65. & 014 & 0134 \\ \hline 10 & 0676 & 0.614 & 8 & 508 & 0463 & 422 & 0.386 & 0352 & 0322 & 0295 & 0.270 & 0247 & 0227 & 0208 & 0 & & & & & & & 107 \\ \hline 11 & 650 & 585 & 1527 & 475 & E & 188 & ) & 0 & 7 & 1 & 37 & 0215 & 019 & 01 & 0 & 01 & 01 & 012 & 01 & 0503 & 94 & 086 \\ \hline 12 & 0.625 & 0557 & 0.497 & 0444 & 1397 & 1356 & 0.319 & & 0 & 1 & 0.208 & & & & & & & , & 0 & 3 & 0 & 0069 \\ \hline 13 & 0601 & 0530 & 0469 & 0415 & 368 & 1326 & 0.290 & 0 & 0.229 & 204 & 01 & 3) & . & 0130 & 0116 & 01 & 0093 & 0084 & 0075 & 0068 & 0061 & 0055 \\ \hline 14 & 0.577 & 0505 & 0.442 & 0388 & & & 3 & 0 & 0.205 & & & & & & 99 & & 8 & 9 & 00 & 5 & 19 & 0044 \\ \hline 15 & 0555 & 0481 & 0.417 & 0362 & 0315 & 75 & 9 & 09 & 0 & 80 & . & 0123 & 108 & 0095 & 0084 & 0074 & 0065 & 0051 & 0051 & 0045 & 0040 & 0035 \\ \hline 16 & 0534 & 0.458 & 0394 & 0339 & 0292 & 252 & 0.218 & 0188 & 16 & 1 & 0123 & 7 & 0093 & 0081 & 0071 & 0062 & 0054 & 0047 & 0042 & 0.036 & 0032 & 0028 \\ \hline 17 & 0.513 & 0.436 & 037 & 0317 & 0.270 & 231 & 0198 & 0170 & 019 & 0125 & 0108 & 093 & 80 & 0069 & 0060 & 0052 & 0045 & 0.039 & 0034 & 0030 & 0.026 & 0023 \\ \hline 18 & & & 50 & 0.296 & 0250 & 0212 & 0.380 & 0153 & 0130 & 0 & 0095 & 0081 & 0069 & 0059 & 0.051 & 0044 & 0038 & 0.032 & 0028 & 0024 & 0.021 & 0018 \\ \hline 19 & 0475 & 0396 & 0.331 & 0.277 & 0232 & 0194 & 0164 & 0138 & 0116 & 0098 & 0083 & 0070 & 0060 & 0051 & 0.043 & 0037 & 0031 & 0027 & 0023 & 0020 & 0018 & 0014 \\ \hline 20 & 0.456 & 0377 & 0312 & 0258 & 0.215 & 0.178 & o & & & & 0.073 & 0061 & 0051 & 0043 & 0037 & 0031 & 0026 & 0022 & 009 & 00% & 0014 & 0012 \\ \hline 21 & 0439 & 0359 & 0294 & 0242 & 019 & & & & & & 644 & 0053 & 0044 & 0.037 & 0031 & 0026 & 0.022 & 0018 & 0015 & 0013 & 0011 & 0009 \\ \hline 22 & 0.422 & 0342 & & & 0184 & 150 & 0123 & 0.101 & 0.083 & 0068 & 0056 & 0.046 & 0038 & 0032 & 0026 & 0.022 & 0.018 & 0015 & 0.013 & & 0009 & 0007 \\ \hline 23 & 0406 & 0326 & 0.262 & 0.211 & 0170 & 0138 & 0112 & 0091 & & 0060 & 0.049 & 0040 & 0033 & 0027 & 0022 & 0018 & 0015 & 0012 & 0010 & 8009 & 0007 & 0006 \\ \hline 24 & 0390 & 0310 & 0247 & 0197 & 0158 & 126 & 0102 & 0082 & 0066 & 0053 & 0.043 & 0035 & 0028 & 0023 & 0019 & 0015 & 0.013 & 0010 & 0008 & 0.007 & 0006 & 0005 \\ \hline 25 & 0375 & 0.29 & 0.233 & 0184 & 0146 & 0116 & 0092 & 0074 & 0059 & 0047 & 0,038 & 0030 & 0024 & 0020 & 0016 & 0.013 & 0010 & 0009 & 0007 & 0006 & 0005 & 0004 \\ \hline 26 & 0361 & 0.281 & 0220 & 017 & & 106 & 0084 & 0066 & 0.053 & 042 & & & 0021 & 0017 & 0014 & 0.0H & 0.009 & 0007 & 0.006 & 0005 & 0,004 & 0003 \\ \hline 27 & 0347 & 0.268 & 0207 & 0161 & 0125 & 098 & 0076 & 0060 & 0.047 & 0037 & 0029 & 0023 & 0018 & 0014 & 0011 & 0009 & 0007 & 0006 & 0005 & 0.004 & 0003 & 0002 \\ \hline 28 & 0333 & 0255 & 0196 & 0150 & 0116 & 0090 & 0069 & 0054 & 0.042 & 0033 & 0026 & 0020 & 0016 & 0012 & 0010 & 0.008 & 0006 & 0005 & 0004 & 0003 & 0002 & 0.002 \\ \hline 29 & 0321 & 0.243 & 0185 & 0141 & 0.107 & 0082 & 0063 & 0048 & 0.037 & 0029 & 0022 & 0017 & 0014 & 0011 & 0008 & 0005 & 0005 & 0004 & 0003 & 0002 & 0002 & 0.002 \\ \hline 30 & 0308 & 0.231 & 0174 & 0131 & 0099 & 0.075 & 0057 & 0044 & 0033 & 0026 & 0020 & 0015 & 0012 & 0009 & 0007 & 0.005 & 0004 & 0003 & 0.003 & 0002 & 0,002 & 0001 \\ \hline 40 & 0208 & 0142 & 0.097 & 0067 & 0046 & 0032 & 0022 & 0015 & 0011 & 0.008 & 0005 & 0004 & 0003 & 0002 & 0001 & 0001 & 0001 & 0000 & 0.000 & 0000 & 0000 & 0000 \\ \hline \end{tabular} The company's discount rate is 14%. Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) EXHierr 78-2 Present Value of an Annuity of $1 in Arrears, 71[1a+r21] \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline enods & 45 & 58 & & 76 & 8% & 95 & 108 & & 128 & 13% & & 158 & 165 & 17x & 18% & 185 & 205 & 2n & m & 234 & 248 & 258 \\ \hline 1 & 0962 & 0952 & 0943 & 0935 & 0926 & 0917 & 0909 & 0901 & 0893 & 0885 & 087 & 0870 & 0.862 & 0855 & 0847 & 0840 & 0833 & 0826 & 0820 & 0813 & 0805 & 0800 \\ \hline 2 & 1886 & 1859 & 1833 & 1808 & 1783 & 1759 & 1736 & 173 & 1690 & 1668 & 1647 & 1626 & 1605 & 1585 & 1565 & 1547 & 1528 & 1509 & 1492 & 1474 & 1457 & 140 \\ \hline 3 & 2775 & 2723 & 2673 & 2624 & 25n & 2531 & 2487 & 2444 & 2402 & 2361 & 2322 & 2283 & 2246 & 2210 & 2124 & 2140 & 2106 & 2074 & 2042 & 2011 & 1981 & 1952 \\ \hline 4 & 3630 & 3546 & 3465 & 3387 & 3312 & 3240 & 3170 & 3102 & 3037 & 2974 & & 2855 & 2798 & 2743 & 2690 & 2639 & 2589 & 2540 & 2494 & 2408 & & \\ \hline 5 & 4452 & 4329 & 4212 & 4100 & 3993 & 3890 & 3791 & 3696 & 3605 & 3517 & 3433 & 3352 & 3274 & 3199 & & 3058 & 2991 & 2926 & 2864 & 503 & & \\ \hline 6 & 5242 & 5076 & 4917 & 767 & 67 & 4486 & 4355 & 4231 & 411 & 399 & 3889 & 3784 & 3685 & 3589 & 3498 & 34 & 3326 & 3245 & 3167 & 3092 & 3020 & 2951 \\ \hline 7 & 6002 & 5786 & 5582 & 5.389 & 206 & 033 & 4868 & 4712 & 4564 & 4423 & 4288 & 4. 60 & 4039 & 3922 & & 3 & 3605 & 3508 & 3416 & 3321 & & \\ \hline 8 & 6733 & 6.463 & 6.210 & 5971 & 5747 & 35 & 5335 & 5166 & 4968 & 4799 & 4639 & 4487 & 4344 & 42 & 4078 & 3954 & 3837 & 3726 & 3 & 18 & 21 & 3329 \\ \hline 9 & 7435 & 7108 & 6802 & 50 & 6247 & 5995 & 5759 & 5537 & & 5132 & 4946 & 4m & 4607 & 46 & 33 & 4 & 1 & 39 & 3785 & 367 & 3566 & \\ \hline 10 & 8111 & 7722 & 7360 & 1024 & 6710 & 418 & 61 & 5889 & 5650 & 5426 & 5216 & 5019 & 4833 & 4659 & & 4 & 4192 & 4054 & 3923 & 3799 & 3682 & \\ \hline 11 & 760 & 8306 & 7887 & 7000 & & 805 & & 6207 & 5 & 568 & 5453 & 5234 & 5029 & 4806 & 4656 & 4486 & 4327 & 4m & 4035 & 3902 & 37 & 56 \\ \hline 12 & 9385 & 8863 & 4 & 943 & 7536 & & & 6492 & 6 & 59 & 5660 & 5421 & 58 & 4 & 4793 & & 19 & 4278 & 4 & 3985 & 3851 & 25 \\ \hline 13 & 9986 & 94 & & 8358 & & 748 & 710 & 6750 & 6424 & & 5842 & 5583 & 5342 & 5 & & 415 & 4533 & 4362 & 4203 & 4053 & 12 & 30 \\ \hline 14 & 10.563 & 9899 & 9295 & 8745 & & & . & 6982 & 8 & 6302 & 6002 & 5724 & 5468 & & & 4802 & 46 & 4432 & 4265 & 4108 & 3962 & 3824 \\ \hline 15 & 118 & 10380 & 972 & 9108 & & & W & 7191 & 68 & 64 & 614 & 5847 & 5575 & 5324 & 92 & 48 & 5 & 89 & 4315 & & 4001 & 3859 \\ \hline 16 & 11652 & 838 & 10106 & 447 & & & & & & & 6265 & 5954 & 5668 & 5405 & & 4938 & 4730 & 4536 & 1 & & & \\ \hline 17 & 12166 & & 10477 & 763 & & 8 & 8022 & 7549 & 7120 & 6729 & 6373 & & & & 5m2 & 4990 & 4775 & 4576 & 4391 & 4219 & 4059 & 3910 \\ \hline 18 & 12.659 & 1690 & 08 & & & & & 7702 & 7250 & 6840 & 6467 & 6128 & 5.818 & 5 & 527 & 5033 & 4812 & 4608 & 4419 & & & 3928 \\ \hline 19 & 13134 & 2085 & 11158 & 10336 & 9604 & 950 & 8365 & 7839 & 7366 & 6938 & 6550 & & & & & & 4843 & 4635 & 4482 & 4263 & 4097 & 3942 \\ \hline 20 & 13590 & 2462 & 11470 & 10.594 & 9818 & 9129 & 8514 & 7963 & 7469 & 7025 & 6623 & 6259 & 5929 & 5628 & 3 & & & & & 4279 & . & 954 \\ \hline 21 & , & & 11764 & 836 & noon & 92 & 8649 & 8075 & 7562 & 7902 & 6687 & 631 & 5973 & 5665 & 5384 & 5127 & & & & 92 & 4 & 63 \\ \hline 22 & & 13 & & & & & & & 7645 & 7100 & 6743 & 6359 & 6011 & 56% & 5410 & 5169 & 4909 & 4690 & 4.488 & 4302 & 4130 & 10 \\ \hline 23 & 857 & 489 & 3 & & wo. & 80 & & 6 & 77 & 7230 & 6792 & 6399 & 6044 & 5723 & 5432 & 567 & 4925 & 4703 & 4499 & 4 & 9 & 76 \\ \hline 24 & 15.247 & 13799 & 12550 & & & 9707 & & 8348 & 7784 & 7283 & 6835 & 6434 & 6073 & 5745 & 5451 & 5+82 & 4937 & 473 & 4507 & 438 & 4:43 & 3981 \\ \hline 25 & 15622 & 094 & 12783 & 11654 & 10675 & 9873 & 9071 & 8422 & 7843 & 7330 & 6873 & 6464 & 6097 & 5766 & 5467 & 5195 & 4948 & 4721 & 454 & 4323 & & 3985 \\ \hline 26 & & 4375 & & & & & & 84 & 78 & & 6906 & 6 & 6 & 57 & & 5206 & & 4728 & 4520 & 4328 & 4851 & 3968 \\ \hline 27 & 16330 & 14643 & 13211 & 1987 & & & 237 & 8548 & 7943. & 7409 & 6935 & 6514 & 6136 & 5798 & 5492 & 5215 & 4964 & 4734 & 4524 & 4332 & 4 & 3990 \\ \hline 28 & 76663 & 898 & 3406 & 137 & 051 & 10116 & 9307 & 8602 & 7984 & 7441 & 6.561 & 6534 & 6152 & 5810 & 5502 & 5223 & 4970 & 4739 & 4528 & 4335 & 4157 & 3992 \\ \hline 29 & 16984 & 15141 & 3591 & & & & 9370 & 8650 & 8022 & 7470 & 6983 & 6551 & 6166 & 5820 & 5510 & 5229 & 4975 & 4743 & 4531 & 4337 & 459 & 3994 \\ \hline 30 & 17292 & 15372 & 13765 & 12409 & 11258 & 10274 & 9427 & 8694 & 8055 & 7496 & 7003 & 6.566 & 617 & 5829 & 5517 & 5.235 & 4979 & 4745 & 4534 & 4339 & 450 & 3995 \\ \hline 0 & 793 & 1159 & 046 & 3332 & 1925 & 10757 & 9779 & 8951 & 8244 & 7634 & n0s & 6642 & 6.233 & 5877 & 5548 & 5258 & 4991 & 4750 & 454 & 4347 & 4166 & 3999 \\ \hline \end{tabular} Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: The company's discount rate is 14%. Click here to view Exhibit 781 and Exhibit 782, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the project profitability 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: Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.)