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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 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows. Product A Products Initial Investment: Cost of equipment (zero salvage value) 5 350,000 $ 550,00 Annual revenues and costs Sales revenues $ 390,000 $ 470,00 Variable expenses 178,000 $ 210.000 Depreciation expense $70,000 $ 110,000 Fixed out-of-pocket operating costs $ 17,000 $ 67,000 The company's discount rate is 20% OK Click here to view Exhibit 14B-1 and Exhibit 148.2, to determine the appropriate discount factor using tables Required: is question by entering your answers in the tabs below. Reg 1 Req 6A Reg 6B Reqbe Reg 3 Reg 4 Reg 5 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product Net present value 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 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows. Product A Products Initial Investment: Cost of equipment (zero salvage value) 5 350,000 $ 550,00 Annual revenues and costs Sales revenues $ 390,000 $ 470,00 Variable expenses 178,000 $ 210.000 Depreciation expense $70,000 $ 110,000 Fixed out-of-pocket operating costs $ 17,000 $ 67,000 The company's discount rate is 20% OK Click here to view Exhibit 14B-1 and Exhibit 148.2, to determine the appropriate discount factor using tables Required: is question by entering your answers in the tabs below. Reg 1 Req 6A Reg 6B Reqbe Reg 3 Reg 4 Reg 5 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product Net present value

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