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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 fiveyear period. His

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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 fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 22% 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 20% Click here to view Exhibit148-1 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. Colculate the internal rate of return for each product. 4. Calculate the profitability 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 payback period for each product (Alound youir answers to 2 decimal alaces.) 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 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 accep 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.) 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 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 place i.e. 0.12 : considered as 12.3%.) Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 considered as 12,3%.) 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. Based on the simple rate of return, which of the two products should Lou's division accept

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