Check my work 6 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 (RON, which has exceeded 24% each of the last three years. He has computed the cost and revenue estimates for each product as follows: 10 points Product Products $ 330,000 Initial inveatment Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating coste $ 515,000 $ 470,000 $ 218,000 $ 103,000 $ 68,000 $ 320,000 $ 168,000 $ 66,000 $ 82,000 aboak Hint The company's discount rate is 15%. Print Required (Use Excel for 2.4); 1. Calculate the payback period for each product. 2. Calculate the nel 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. References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 6 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A years Product B years | Paytrack period Req1 Req 2 > Ch. 14: Homework . Savad Help Save & Exit Submit Check my work 6 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 24% each of the last three years. He has computed the cost and revenue Estimates for each product as follows: 10 points Product Products A $ 330,000 $ 515,000 Initial investment: cost of equipnent (zero salvage value) Annual revenues and casta: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating coata Bao $ 370,000 $ 168,000 $ 66,000 $ 82,000 $ 470,000 $ 218,000 $ 103,000 $ 58,000 Hint The company's discount rate is 15% Print 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. B References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Req GA Using Excel, calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value Check my work 6 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 detemined by his division's return on investment (ROI), which has exceeded 24% cach of the last three years. He has computed the cost and revenue estimates for each product as follows: 10 points Product A Product D $ 330,000 $ 515,000 Initial investment: Coat of equipment (zero Balvage value) Annual revenues and costs: : Sales revenues Variable expenses Depreciation expanse Fixed out-of-pocket operating costs Book $ 370,000 $ 169,000 $ 66,000 $ $ 82,000 $ 470,000 $ 218,000 $ 103,000 $ 68,000 it Hint The company's discount rate is 15%. % Print 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. References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 6A Using Excel, calculate the intemal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Product A Product B Internal rate of retum % Check my work 6 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 24% each of the last three years. He has computed the cost and revenue estimates for each product as follows: 10 points Product Product B A B $ 330,000 $ 515,000 Initial investment: : Cost of equipment (zero salvage value Annual revenues and costs: Sales Levenue Variable expenses Depreciation expense Tixed out-of-pocket operating costs eBook $ 370,000 $ 168,000 $ 66,000 $82,000 $ 470,000 $ 210,000 $ 103,000 $ 60,000 Hnt The company's discount rate is 15% Print 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. References Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Ree 6A Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Profitability index Check my work 6 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 24% each of the last three years. He has computed the cost and revenue estimates for each product as follows: 10 points Product Product B A $ 330,000 $ 515,000 Initial investment: Coat of equipment (sara salvage value) Annual revenues and coala: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating coets eBook $ 370,000 $ 168,000 $ 66,000 $ 82,000 $ 470,000 $ 218,000 $ 103,000 $ 60,000 Hint The company's discount rate is 15% 2 Print 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. Ga. For each measure, Identify whether Product A or Product Bis preferred. . References Complete this question by entering your answers in the tabs below. Reg 1 Heq 2 Reg 3 Reg 4 Roq 6A For cach measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return