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Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufocture and sell one of two new products for a flveyear period. His

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Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufocture and sell one of two new products for a flveyear period. His annual pay raises are determined by his division's return on investment (RO), which has exceeded 19% each of the last three years. He computed the following cost and revenue estimates for each product: The compary's discount rate is 17% Click here to view Extibit 148,1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate eoch product's payback period. 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitablity index. 5. Calculate each product's simple rate of return. 6a. For each measure, identify whether Product A or Product B is preferred. 6 b. 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 each product's payback period. Note: Round your answers to 2 decimal places

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