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Lou Barlow, 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 Barlow, 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 investment (ROI), which has exceeded 17% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Products Initial investments Coat of equipment (zero salvage value) $ 180,000 $ 390,000 Annual revenues and contai $ 260,000 $360,000 Variable expennen 9 124,000 $ 174,000 Depreciation expense $36.000 $ 78,000 Tixed out-of-pocket operating conta $ 71,000 $ 50,000 Sales revenues The company's discount rate is 15% Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount foctor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the not 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 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. Chi Requirea: 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. 66. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. os Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req6A Reg 68 Calculate the payback period for each product. (Round your answer to 2 decimal places. Product Producto Payback period years years HARI Req2 > Requirea: 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. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Req 6A Reg 68 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value 1 Requirea: 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: nts eBook Complete this question by entering your answers in the tabs below. Print References Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6A Reg 68 Calculate the internal rate of return for each product. (Round your answer to 1 decimal place le. 0.123 as 12.3%.) Product A % Product B Internal rate of return % Req2 Req 4 > Requirea: 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. 66. Based on the simple rate of return, Lou Barlow would likely: ok Complete this question by entering your answers in the tabs below. cos Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6A Reg 6B Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index Requirea: 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. Reg 1 Reg 2 Reg 3 Req 4 Reg 5 Req 6A Reg 6B Calculate the simple rate of return for each product. (Round your answer to 1 decimal place l.e: 0.123 she as 12.3%.) Product A % Product B % Simple rate of retum Reg 4 Req 6A > Requirea: 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: t Complete this question by entering your answers in the tabs below. sces Reg 1 Reg 2 Req3 Reg 4 Reg 5 Heg 6A Reg 6B For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate Simple Rate of of Return Return

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