Can someone perform all the calculations to this problem in an Excel spreadsheet using cell refrencing and formulas?
Please and Thank you!!
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 19% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product D Initial investment: Cost of equipment (zero salvage value) $ 190,000 $ 400,000 Annual revenues and costs: Sales revenues $ 270,000 $ 370,000 Variable expenses $ 128,000 $ 178,000 Depreciation expense $ 38,000 $ 80,000 Fixed out-of-pocket operating costs $ 72,000 $ 52,000 The company's discount rate is 17%, Click here to view Exhibit 14B-1 and Exhibit 14B-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 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, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Payback period 2.71 Product B 2.86 years years Reg1 Req2 > Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Req 5 Req 6A Reg 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar Net present value Product A $ 33,930 Product B $ 47,860 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. considered as 12.3%.) Product A 24.6 % Internal rate of return Product B 22.1% Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4 Req 5 Req 6A Req 6B Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B 1.12 Profitability index 1.18 Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Reg 4 Reg 5 Req 6A Calculate the simple rate of return for each product. (Round your percentage answers to considered as 12.3%.) Simple rate of return Product A 16.8% Product B 15.0 % Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B For each measure, identify whether Product A or Product B is preferred. Net Present Value Product B Profitability Index Product A Payback Period Product A Internal Rato of Return Product A Simple Rate of Return Product A Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Req 6A Reg 6 Based on the simple rate of return, which of the two products should Lou's division accept? O Accept Product A O Accept Product B Reject both produce
