AutoSave ( OFF ~ A . C G ... Lou Barlow - Saved to my Mac 8 Home Insekt Draw Design Layout References Mailings Review View Tell me Share Comments Arial 13.5 ~ A A Aa AaBbCcDdEe AaBbCcDdEe AaBbCcDc AaBbCCDdE AaBb( AaBbCcDdEE U Paste B I Uvab x x ADVA EE Normal No Spacing Heading 1 Heading 2 Title Subtitle Styles Dictate Editor Pane Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year 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: Product A Product B Initial investment: Cost of equipment (zero salvage $390, 000 $585, 000 value) Annual revenues and costs: Sales revenues $420, 000 $500, 000 Variable expenses $185, 000 $222, 000 Depreciation expense $ 78, 000 $117, 000 Fixed out-of-pocket operating $ 90, 000 $ 70, 000 costs The company's discount rate is 21%. Required (Use Excel for 2 - 4): 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 profitability index for each product. 6a. For each measure, identify whether Product A or Product B is preferred. Focus - + 100% 167 words [ English (United States) MacBook Pro