Lou Barlow, a divisional manager for Sage Company, has an opportunify 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 19% each of the last three years. He computed the following cost and revenue estimates for each product. The company's discount rate is 17% Required: Required: 1 Calculate each product's payback period. 2 Calculate each products net present value 3. Calculate each product's internal rate of retum a. Calculate each products profitability index 5 Calculinte each proctuct's simple rote of return 6a. For each measure, idently whether Product A or Product B is preferred 66 . Based on the simple rate of return, which of the two products should tours division accept? Complete this question by entering your answers in the tabs below. Required: 1. Calculate each product's payback period. 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitability index 5. Calculate each product's simple rate of return. 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. Calculate each product's payback period. Note: Round your answers to 2 decimal places. Required: 1. Calculate each product's payback period 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitability index 5. Calculate each product's simple rate of return 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 each product's net present value. Note: Round your final answers to the nearest whole dollar amount. Required: 1. Calculate each product's payback period. 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return 4. Calculate each product's profitability index. 5. Calculate each product's simple rate of return. 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. Calculate each product's internal rate of return. Note: Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%. Required: 1 Calculate each product's payback period 2 Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4 Calculate each product's profitability index 5 Calculate each product's simple rate of retum 6 a 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 each product's profitability index. Note: Round your answers to 2 decimal places. Required: 1. Calculate each product's payback period. 2 Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitability index. 5. Calculate each product's simple rate of return. 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. Calculate each product's simple rate of return. Note: Round your percentage answers to 1 decmal place t.e. 0.123 should be considered as 12.3%
