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Lou Barlow, a dilsional 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 Barlow, a dilsional manager for Sage Company. has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay ralses are determined by his division's return on investment (ROI), which has exceeded 20% 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 18%. Requlred (Use Excel for 2 - 4): 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 6a. For eoch measure, Identify whether Product A or Product B is preferred Complete this question by entering your answers in the tabs below. Calculate the poyback period for each product. (Round your answers to 2 decimal places.)

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