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 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product Initial investments cost of equipment (zero walvage value) $ 390,000 $585,000 Annual revenues and contar Sales revenuen $420,000 $500,000 Variable expenses $ 185,000 $ 222,000 Depreciation expense $ 78,000 $ 117,000 Tixed ost-ot-pocket operating costs $ 90,000 $ 70,000 The company's discount rate is 21%. Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor using tables a OL DHIBITSUB-1 recent Value of the 24% 25% 20% 27 16% 173 Periods 63 53 8% 7 9 0.962 0952 090 0935 0925 0.91 0909 0907 0990 0.885 0.77 0.870 0362 0855 0847 0340 0.833 0026 0.820 080806 0.800 0.06 069 0683 0672 0661 0.650 0640 2 095 0907 0990 0.873 0857 09420826 08120297 078 079 0756 070731 0713 3 39 0564 0340 081 0794 0720751 0731 0712 0680 0.6750658 0.611 06244 060905930579 0.564 0551 0527 0.524 0512 4 0855 08230.792 0763 075 0.70 0683 0.659 0636 060 0592 0572 0552 0534 0516 0.299 0.482 0.467 0451 0.07 0.423 0.410 0328 5 0822 0784 0747 0713 0.681 0850 0.621 0.583 0.567 050 059 0497 0.476 0456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 5 0.750 0.746 0705 0666 0.630 056 0554 055 0507 0480 0156 0.412 0.410 0.90 0.370 0352 0335 0.319 0.303 0289 0275 0.262 7 03760071 0665 0623 0583 050 051 0482 0.452 0425 0.000 0.376 0.354 0333 0.3 0295 0279 0263 0249 0235 0222 0210 0731 0.19 0168 0.5770627 0562 0.500 0.502 0.457 0.434 0.404 0376 0.351 0327 0305 0785 0.256 0249 0733 0.218 0204 0191 9 07030645 0.592 054 0500 0.60 0.4240391 0361 0333 0.308 0234 0.263 020 0225 0.209 0194 0180 0167 0155 0144 0134 06750614 0.558 0508 0.463 0.422 0.336 0352 0.322 0295 0270 0247 0227 0208 0191 010 0162 0.109 0137 0126 0.156 0107 0650 055 0527 0:475 0.429 0.38 0.250 0.37 0.287 0261 027 02150195 0178 0362 0163 0135 0123 0112 0.103 0.094 0086 12 0.625 0.55 0.497 0.444 0.397 0356 0.319 0.256 257 02310200 000 0958 0.152 0937 0112 0102 0.092 0083 00760069 0.0010510 0.400 0.45 0.3 0.3260290 0.750 0.22 0.204 0832093 0545 0130 0115 0004 0.003 0.0040075 0.068 0.001 0.055 057 0505 0.449 0209 0340 0.299 0.263 0232 0205091 OO 0140 0125 0111 0.099 0058 007 0069 0.052 0055 0.049 0014 15 0555 0.41 0.07 0.062 0.315 0275 0200 0.209 0983 0.3600001230108 0.035 0.034 0010065 0057 0051 0.005 0.000 0.035 0.534 04580.234 0339 0.292 0252 021 0180363 0.14 00237 0090 0.001 007 0062 0054 0.047 0.042 0.035 0.002 0.028 050 036 0371 0.30 0.27002010190 010 0165 0125 os 0000 0.0000069 00600052 0045 0.039 0034 0030 0.026 0.023 0910476 0350 0.256 0.250 022 0.001500130 0095 0.0010069 0.059 0051 004 0038 0.032 0026 0.024 00210018 0475 0296 03810277 0.222 0194 01540103 016 0098 0083 00700060 0,051 0.003 0.0370031 0027 0.023 00200017 0.014 20 04560377 032 0253 025 0.02 01690124 0904 0087 0073 0061 00510033 00370031 0.026 0.022 0.0190016 0.014 0.012 20 0.39 0.359 0.294 0.2420199 0.564 005 0112 0.003 0.077 0064 0.053 000 0.007 0.0.31 0.025 0.022 0.01 0.015 0:01 0011 22 0422 0.342 02780226 0184 0009 0.1500123 0907 0.083 0.068 0056 005 0038 0.032 0.026 0022 0.008 23 0.015 0.015 0.01 0.005 0.325 0262 0.21 0009 0.007 010 018012 0.01 0.078 0.0000019 0.0400033 0.027 0022 0.01 0.015 0012 0010 0009 0007 0.006 0.790 02100247 097 6156 0126002 0.002 0.066 0.033 003 0.035 0.025 0.0230019 0.01 0.03 0010 0.000 0.007 00050005 25 0.375 0295 023 0151 08 016 0.002 001 0.059 0047 0008 0.000 0.024 0.02000000 0.00 0.00 0.00700060005 0.004 351 0211102200172 01350100054 0.006 005300120023 0.025 0.021 0.00 27 040 2000 202 0101 Oontoon 0.009 0.002 0.00000050004 0.003 0125 0.00 0.00 0.000 0.047 0.037 0.003 0023 0.0000 00 0331 02550105500 00090007 0,005 0005 0.00000000002 0.090 0000 0084 0002 0033 0.025 0.020 000 0002 0.000000000000005 0004 0.000 0002 0.002 0321 020 0195 0:31 0902 0082 000 000 000 00290002 0.00 0.01001 0.008 0.005 0.005 0004 0.00200020002 0.002 0.008 0.24 0.174 0 0099 005 0.057 004 0000 0026 002000150012 0.00 0.00 0.0050004 0.000 0.003 0.002 0.002 0.001 40 02000142 0.097 0.067 000 000 0022 0.005 0.00 0.00 0.00 0.004 0000 0.000 0.00 0.00 0.00 0.000 0.000 0.000 0.000 0.000 PONDRRN MORRORS Periods 2 3 ==mmmmmmmmmmmm 53 64 Sh 9 D ||| P 20 22% 2 70 ag6. 0952 094 1935 0926 097 0900 0 0 073 ORBS 08 0870 0362 0755 0.8MT0BHD 0.83 09260820 0 0806 0800 26 184 18 18 1 15.0 LIF 1E 1690 1668 1647 16.51F05 16 151 ATT 158 19 14: TAT B: 149 25 7 2 257 253 27 2444 2402 23617322 22832746 270 27 21 200, 2014 2012 201 1 152 330 356 34F. 3 172 3:40 3.TO 3.102 3037 2974 79 28 2 2743 20 269 29 2540 24 24 2404 2362 52 4 3990 300 3791 36 305 357 34 3352 274 399 37 30 2991 2926 2BEH 2 2345 26 522506 | ni Thi 462 4395 12 # 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Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 68 Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Profitability index Product B 0.04 0.09 Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Reqs Reg 6A Req 6B Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place le. 0.123 should be considered as 12.3%.) Product A Simple rate of return Product B 176 % 15.2 %