es Propiem 12-23 (Aigo) Comprenensive Propiem [LU12-1, LUIZ-2, LU12-3, LUTZ-5, LU12-0 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: Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs 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. Req 1 Complete this question by entering your answers in the tabs below. Req 2 Payback period The company's discount rate is 17%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor using tables. Req 3 Product A 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? Req 4 years Product A Product B $ 190, 200 $ 270,000 $ 128,000 years $ 38,000 $ 72,000 $ 80,000 $ 52,000 Req 6B Check m

Lou Barlow, a divisional manager for Sage Company, has an opportunty to manufacture and sell one of wo new products for a fiveyear period. His annual pay rases are determined by his division's return on investment (ROD). Which has exceeded 19% each of the last three yoars. He has computed the cost and revenue estimates for each product as follows: The companys discount rate is 17%. Click hee to view Exhibit 128.1 and Exdibit.128-2, to determine the approprlate 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 intemal rate of return for each product. 4. Calculate the profitablity 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 preterred 6b. Based on the simple rate of return, which of the fwo products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the poyback period for each product. (Round your answers to ? dectmal places:) Lou Bariow, 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 teturn on investment (ROD). Which has exceeded 19% each of the last three years. He has computed the cost and revenue estimates for each product as follows: The compony's discount rate is 17%. Click here to view Exhibit 128-1 and Exhibit 12B-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 profitablity 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, which of the two products should Lou's division accept? 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.)