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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270, eee $ 480, eee Initial investment: Cost of equipment (zero Salvage value) Annual revenues and costs: Sales revenues variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320, eee $ 148,000 $ 54,90 5 77,600 $ 420,000 $ 199,000 $ 96, eee $ 57,000 The company's discount rate is 19% Click here to view Exhibit 12B-1 and Exhibit 12B-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 project profitability Index for each product. 5. Calculate the simple rate of return for each product. 6a. For each measure, identify whether Product A or Product B is preferred 66. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product B Product A years Payback period years Reg Reg 2 > 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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270,000 $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320,eee $ 148,000 $ 54,000 5 77,600 $ 420,000 $ 199,000 $ 96,000 57,00 $ The company's discount rate is 19% Click here to view Exhibit 12B-1 and Exhibit 12B-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 project profitability index for each product. 5. Calculate the simple rate of return for each product. 6a. For each measure, Identify whether Product A or Product B is preferred 6. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4 Reg 5 Req 6A Reg 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Nel 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 (ROD, which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270,000 $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320,000 $ 140,000 $ 54,000 5 77,000 $ 420, cee $ 198,00 $ 96,000 $ 57,00 The company's discount rate is 19% Click here to view Exhibit 128.1 and Exhibit 128.2. 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 project profitability Index for each product 5. Calculate the simple rate of return for each product 60. For each measure, identify whether Product A or Product B is preferred 66. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Req: Reg 2 Req3 Reg 4 Reg 5 Req GA Reg 6B Calculate the internal rate of return for each product. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%) Product A Product B Internal rate of return % % 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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270,000 $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320,000 $ 148,eee $ 54,000 $ 77,000 $ 420,eee $ 198,eee $ 96,000 $ 57,eee The company's discount rate is 19%. Click here to view Exhibit 128.1 and Exhibit 12B-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 project profitability Index for each product. 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, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Ruta A Reg 1 Req 2 Reg 3 Reg 5 Reg 6 Reg 68 Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index 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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270,eee $ 480, eee Initial investment: cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320,000 $ 148, ee $ 54,eee $ 77,000 $ 420,000 $ 199,000 $ 96,000 $ 57,00 The company's discount rate is 19% Click here to view Exhibit 123.1 and Exhibit 12B-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 project profitability Index for each product 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, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Treas Reg 6 Reg 68 Calculate the simple rate of return for each product. (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%) Product A Product B Simple rate of return 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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 270,000 $ 480,eee Initial investment: cost of equipment (zero Salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 320,00 $ 148,00 $ 54,eee $ 77,600 $ 420, eee $ 198, $ 96,eee $ 57, eee k The company's discount rate is 19% Click here to view Exhibit 12B1 and Exhibit 12B 2. to determine the appropriate discount factor using tables nces 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 project profitability Index for each product. 5. Calculate the simple rate of return for each product. 6a. For each measure, identify whether Product A or Product B is preferred 65. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 3 Req 1 Reg 2 Reg 4 Reg 5 Reg 6A Req 6B For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Payback Internal Rate Simple Rate of Value Index Period of Return Return