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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 fiveyear penod. His

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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 fiveyear penod. His annual pay ralses are determined by his division's retum 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 value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the profitability index for each product 6a. For each measure, identify whether Product A or Product B is preferred Complete this question by entering your answers in the tabs below. Using Excel, calculate the internal rate of return for each product. (Round vouc percentage answers to 1 decimal place i.e. 0.123 should be censidered as 12.3% )

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