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 (ROl), which has exceeded 25% each of the last three years. He has computed the cost and revenue estimates for each product as follows:

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 25% 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 19%. Click here to vlew Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor using tables. Required: 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. 4. Colculate the simnle rate of return for each nroduict 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, which of the two products should Lou's division accept? 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.) Calculate the simple rate of return for each product. For each measure, Identify whether Product A or Product B is preferred Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) 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, which of the two products shouid Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place lie; 0.123 should be considered as 12,3%.) 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, which of the two products should Lou's division occept? Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) 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, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the simple rate of retum for each product. (Round your percentage answers to 1 decimal place hie. 0.123 should be considered as 12.3\%.) 5. Caiculate 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 retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. 5. Calculate the simple rate of return for each product 6 . For each measure, identify whether Product A or Product B is preferred 6b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Based on the simple rate of return, which of the two products should Lou's division accept? Accopt Product A Accept Product B Rejoct both products Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 25% 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 19%. Click here to vlew Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor using tables. Required: 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. 4. Colculate the simnle rate of return for each nroduict 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, which of the two products should Lou's division accept? 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.) Calculate the simple rate of return for each product. For each measure, Identify whether Product A or Product B is preferred Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) 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, which of the two products shouid Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place lie; 0.123 should be considered as 12,3%.) 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, which of the two products should Lou's division occept? Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) 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, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the simple rate of retum for each product. (Round your percentage answers to 1 decimal place hie. 0.123 should be considered as 12.3\%.) 5. Caiculate 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 retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. 5. Calculate the simple rate of return for each product 6 . For each measure, identify whether Product A or Product B is preferred 6b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Based on the simple rate of return, which of the two products should Lou's division accept? Accopt Product A Accept Product B Rejoct both products