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For each measure, identify whether Product A or Product B is preferred Calculate the net present value for each product. (Round your final answers to
For each measure, identify whether Product A or Product B is preferred Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Calculate the simple rate of return for each product. (Round your answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Based on the simple rate of return, Lou Barlow would likely: 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 21% 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 19%. Click here to view Exhibit 7B-1 and 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: Calculate the payback period for each product. (Round your answers to 2 decimal places.) Iculate the internal rate of return for each product. (Round your answers to 1 decimal place i.e. 0.123 should be considered 12.3%.)
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