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Lou Barlow, a divisional manager for Sage Company, has an opportunity to marifacture and sell one of two new products for a fiveyearperlod. His annual

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Lou Barlow, a divisional manager for Sage Company, has an opportunity to marifacture and sell one of two new products for a fiveyearperlod. 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%. Required (Use Excel for 2-4): 1. Calculate the payback period for each product. 2. Calculate the net present volue for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the profitability index for each product. 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. Using Excel, 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. Using Excel, calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.12 .3 should be considered as 12,3%.) Calculate the profitability index for each product. (Round your answers to 2 decimal places.)

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