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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.

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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 return on imvestment (RO), which has exceeded 23% 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 15%. Click here to view Exhibit 148-1 and Exhibit 148:2, to determine the oppropriate 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 profitability index for eoch 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? Complete this question by entering your answers in the tabs below. Colculate the payback period for each product. (Round your answers to 2 decimal places.) 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.) Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product, (Round your percentage answers to 1 decimal ploce l.e. 0.123 should be considered as 12.3%6, ) Complete this question by entering your answers in the tabs below. Calculate the brofitability index for each product (Deund your anmers to 2 decinal places.). Complete this question by entering your answers in the tabs below. Caiculate the simple rate of retum for each product. (Asund your percentage arswers to 1 decimal place Le. 0.123 should be considered as 12 . 17.4 Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. Eared on the simple rate of returr, which of the two products should Lous divisan accept

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