Help Save & Exit SC 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 (RO) 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 Products Initial Investments Cost of equipment (zero salvage value) $ 290,000 5.490,000 Annual revenues and costs: Sales revenues $ 340,000 $ 440,000 Variable expenses $154.000 $ 206,000 Depreciation expense $ 55,000 $ 98,000 Fixed out-of-pocket operating costs $ 79,00 $ 59,000 51 The company's discount rate is 15% Click here to view Exhibit 148.1 and Exhibit 148.2. 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 retum for each product 4. Calculate the profitability Index for each product 5. Calculate the simple rate of return for each product 5a. 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. BO'F Sunyee ING @ o Type here to search 000 OOOOO 100 OOO OOO 30000 3000 30 30 DOISSOLO ORTODOODLOO00033 DD 1000001000100 COYOTE FOTO 00006 0 ORD 030010101010 0004 DA 1 OD 2 DUOS DEDOS 100 100 100 OR 1000000 09:15 09:30 FOTO146010 DO DONO DODOL 0000030 ODOLOXON00OOO000100000000 65000000OOOO1030D 0005 003 DALIES DE 602 00 10 000000 500002 LOTO GIOIKO ERDOOOOOOOOOOOO TI 300000 DIDICO TODOS100 1100 ROODOO 1000 WOODSTOCOLLOOHOOOOO900 OOOOOOOOOOOOOO 31200 ROOOOOOOOOOOO COORDOOR LOC0000OO0016009110 SEN OLL INDOOR 110000 10000 1000000 5001 LOGIST LOOD KOOST 300000010500 DO 3010 SELOODI OD 10 DO 10 ORHOLOOOOOOOOOOOOHOO BICO SRO LOGO LORONTO ONO SHOO 15000 2000 56001S00 KOLORO 10 DO GOOSE SOLUTIONS 1000000000000000 DITO SIDO0010 LOSOVOOOOO DOG 3500 1000 19001 ISO 100 ESODOROTOCOLOSO 190EDDOOS 1000 1900 1600 COLORES DECOROLLOOOOOOOOSSO 90 WOOOOOOOOOOOOOOOOOOOOOOSE COSTOSO TOTDOOOOOOOOOOOOOOOOOOOOOOOOOOOHOODIES 10 9200 VELOMO 10 LOLLO DELLE 19 OCOROLOO000 1500190 99100101010 101 LOROSO DESOTOYO IPO LOCOSORIOSO SOLO TELO OOOOO VROLICOS SED DOLORISTOSOS ESOTO 5990 COOL 999 SOLDO 16 15 14 1 LE 11 01 060 05950 564 0.53505071005604101000100352031 0110101020150202 0.790 050062100.56705031904970007649202160370015031 DE 10. TOMOTO 610.59203572055205340516049900467041100D 103000060636 0555 0339 0.116 0.706072202510107308306259 065806106006000500370360551 05.05.2012 0319 0164 0.340 0.925 OD070390 08570142060112079778307000175600766061 067216000 33 0035 096 09120.90000000000000525570 ODHOD 01060300 2192 2048 105 19 109119 1594 19 090209320043 IS les 396 594 498 2 6 5 4 3 SEE 16 Periods MUS 1937 1209 138 1374E6 0055 16115111133701 ISTIONE OD 155020 30 30 29 5550 STOLE SISSE COST DOSTLARISSIONS DISSO 0902SO4 GROSSETO 1969 DESETOOTOLO BOB 0991 SALESET 1961 SINSSICOESORIOS 100 33 LETELOOSOL 31 DSET 386 PREDOSLO 006R01 186780365199600 ORLD SHS LORS GEZELLIT TBLOSSO DOCES 19 23 3985518 15241255011409 10:29 1455710953053323602 B30629264109000016797378 30+130 FC 10 1 20 10 TO 5 103960 31 0096969691100LEDOVOLS SCHOTHO LOTI LIELISET CLS599 SELESAI 419093 ODE TOT 19 LETTORE 196 ETIO GOT KOLO 0 LOS RISCOLOROLO BOLCHIZOS FOTO 678005915 1952 1619 059 DE DESTACA 00t 1809 CISCED LES ASS85BEI A PONOROUTES 9923 0001 DISCOGER TOUS LE 066 SUNSONGS 210 9. ELEZIOSOBNO196 OLD POLICE ALL SOFA DE ESOS 1899 S109: 00 Lott SOOS SIELOSSWOOSHES SESSIVE 19 19 19 1909 1903 062016 CREOL SILL RECOLETTE 11908005 OUTSI 89NSTSC009 COCO 829986995298 HTC OLIO STOTIET 140 OBSESSIESE EIES ECTOR 1092ESFIBER ESSES SVEISEX BICH COULOIS0995815 SPORDIPOL 9552 POLIS 100 OOSEOUL | 0 99000 | | | | | | | | | | | | | | | | | 15 ELLA KOLEGGIO 2015 SEOSESIONES SHARE TOL KOSTENLILIT ISO 98 SOOSOLE OCODICES BESSAS OLISI56695159 CONNESSEE DE BISCOVER ALS SOLOPO MO 0696 OSSSSSSS TO KO RELEE TOIS0030 IRS LOGO 1 16 1 TE 1030 9.986 12 11 10 D 1 7 6 5 US ESHITIS 100260805 MOZO CONSOLE OSS 6.0023716315823892060241245644342016100 4416 4554231411100974723597980336 32456789212051 543307689401 2124100 3.991890 17913606300513517333933010010582201202602165221012 430 3405 3610 2013 2012 2011 2012 2017 02 222 223 2246 2202170M 2.1002072 2001 2000 1901 103 1642162610051351566192 TOY 1110 1165915331100 096209570.00 0.00 9 15 618 544 1 109.00 ALORILLERAT WORD DIORDERO OROLHOSOCOROLOGIO ROSSOBLOX 1060060160 000 SEPT SESINIESOL 61 4651 S91 9651 21 ST WEL SIT 01 Periods Present Value of an Annuity of 51 i Arrears, 111.1(17) -n.com/Media/Connect Production/accounting/gason 17e //bit.142
