jear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 19% each of the ast three years. He has computed the cost and revenue estimates for each product as follows: The company's discount rate is 17%. Click here to view Exhibit 781 and Exhibit 78-2, 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 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: Complete this question by entering your answers in the tabs below. Caiculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) The company's discount rate is 17%. Click here to view Exhibit 78-1 and Exhibit 78-2, 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 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. 6 b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your answers to 1 decimal place l,e, 0.123 should be considere as 12.3% ) The company's discount rate is 17%. Click here to view Exhibit 78-1 and Exhibit 7B-2, to determine the appropriate discount factor using tab 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. 6 a. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Based on the simple rate of return, Lou Barlow would likely: The company's discount rate is 17%. Click here to view Exhibit 781 and Exhibit 782, 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. 6 b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. 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%.) Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a flveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 19% each of the ast three years. He has computed the cost and revenue estimates for each product as follows: The company's discount rate is 17%. Click here to view Exhibit 78-1 and Exhibit 78-2, 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 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: Complete this question by entering your answers in the tabs below. Calculate the payback period for each product. (Round your answers to 2 decimal places.) EXHIBIT 78-1 Present Value of 51; 0+Fr21 The company's discount rate is 17%. Click here to view Exhibit 78-1 and Exhibit 78.2, 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 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: Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. EXHIBIT 78-2 Present Value of an Annuity of $1 in Artears; ?1[1(0+2)21] EXHIEIT 78-1 Present Value of 51:1 EXrilar 782 Present Value of an Annurty of 51 in Arrears; x1[110++21] 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: The company's discount rate is 17%. Click here to view Exhibit 78-1 and Exhibit 78-2, 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 project profitability index for each product. 5. Calculate the simple rate of return for each product. 6 a. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Calculate the project profitability index for each product. (Round your answers to 2 decimal places.)
