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 (RON, which has exceeded 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product 3 Initial investment Cost of equipment (zero salvage value) $ 310,000 $ 510,000 Annual revenues and costs: Sales revenues $360,000 $ 460,000 Variable expenses $164,000 $ 214,000 Depreciation expense $ 62,000 $ 102,000 Fixed out of pocket operating costs $31.000 $65.000 The company's discount rate is 18% Click here to view Exhibit 148.1 and Exhibit 143.2 to determine the appropriate discount factor using tables BOOT - acetValue of the SO 1 Periods 50% -7% 99 10 11 123 153 16 m 162 199 200 211 225 23 24 25 + 0.9620952 09009150925 0.977 090909010893 05 087708700862 0.855 0.347 0.540 0333 0.026 0.0200.0130306 0.000 2 0925 0.907 0.590 073 0857 0.542 0820 20.797 0753 0.709 0.750 0.700.7710718 0.70606940.600.672 0661 0650 0.640 3 08890.364 084000294 0772 0.751 073 072 0.000 0.679 0658 0.64 0.24 0.609 0.593 0.579 0.556 0.551 0.537 0524 0.512 0.855 0.021 0.792 0.13 0.735 0700083 000 000 000 0.50205720552 0534 0516 0.190 0.42 0.467 0451007 0.423 0410 5 0522 0734 0.17 0.7 0.650 0621 0503 056 050 05190497 0.6 0456 0.07 0.10 0.40) 0.386 0.370 0.355 0.341 0.328 07900346 0203 0.000 0.000 0.506 0564 0.535 0.507 0.400 0.456 0432 0.4 0.30 0.370 0352 0.335 0.31 0.0002000275 0262 2 0.7000M 0.665 0022 053 0541 050 0412045204250.400 0076 0.954 om 0.31 0295 02700263 024 0235 0222 0.210 0 0.31 0.6770627 05020540 0.502 0.467 0056 0.404 0176 0.351 0.327 0305022562660249 0237 02130204091 0119 0168 9 0.700 0005 052 0541 0.500 0.40 0.24 0.01 0.351000308 0254 0.253 07602250 2000194013000155 054 0134 10 000010 0.550 0.50 0.13 0.422 031 015203220295 02700270227 02080191 0176 0162 0.100 0.007 0.126 0.007 11 0.650 0.55 0.527 0.05 0.429 038 035003170207 0.201 0237 0215019501704200500112 0103 0.001 008 12 0.625 0557097 0.4 0.3970356 0.319 0206 0257 0231 0.20 0.117 0169 0152017 024 OTO 000 0.092 003 0.000000 0.601 0530 0469 0.5 0.365 0325 0.250 0.250 0229 0.704 032 070145 000 0.504 0000 0084 075 0680061 0.055 05T10505 0.412 0.388 0.340 0.299 0.200 0.22 0.205 0181 0.0041 0125 0.1 0.099 0.098 0.078 0.00 0.00 0.05 0.019000 15 0555 6401 0417 0362 0.25 0275 0.23 0.209 010 036003400123 0908 0095 0.094 0074 0.005 0.051 005 0045 004 0035 10 0534 0.058 0.794 0779 0292 0252 026 016 01 012301070093 001 007 0.002 0054 0067 00000600120029 12 050 0495 0.71 0010270 0231 0.90 0.160.125 0.00 0.00 0000 0000 0000 0052 0045 000 0034 0030 0.025 0.027 10 0.44 0.4% 0.350 02900250021201300153 0130 0 0 095 001 000 0059 003 004 0.0380032 0.028 0034 0.021 0018 19 0475 0295 0331 027 02120001540133 0115 0.098 000070 0.00 0.061 000 0.00 0.00 0.021 0023 0000000005 20 0.156 031 0.312 0.258 02150178 0449 0124 0904 0m 0072 0.001 ost004 0.037 0.001 0.025 0.022 0.0190.0% 0.010012 21 0.4390359 0.294 02420199 0940135 9.112 0.090 0.07 0.064 0053 0044 002 003 0.025 0.02 00001500000 0.005 22 0.422 0.342 0.271 0221 01840150 0120301 0.0000068 0056 0046 0038 0032 0.025 0.022 0.0005 0000 0.000 0.007 2 0496 022 0.22 0.21 0170 001010 0.081 0.07 0.060 0049 0040 0.00 0.02 0.022 0.0130095 000 000 0.00 0.00 0.006 24 0.30 0.20 0.2470058 0126 0102 0082 0.066 0.053 000 0.035 0.021 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 25 0.375 0.795 020 0194 OS 00820074 0.000 0.00 0.00 0.0300024 0.021 0.0000 0.00 0.00 0.00 0.00 0.00 0.004 26 0301 02 02200172 00501000054 0000053 0042 033 0.025 0.025 0.01 0.04 0.01 0.003 0.007 0.000 0005 0004 0000 22 03002580297 00 0035 0.00000000000000290021 000 001 0000 0 0.000 0.00 0.00 0.00 0.00 03 0255 000 1500 0.000009005600120011 000 000 000 000 0010 0.00 0.00 0.005 0000 0000 00020000 20 01210.2005 0102 0000 0000 002 00000000000001 000 000 000 000 000 000 000 000 0.00002319114 00900750057 00 0.00 0.026 0020 0,015 000 0000 000 000 0004 0.00 0.00 0.000000 000 6.2010200970067 004 000 0002 00100 0000 000 0004 0000 0000 000 000 0000 0000 0000 0000 0000 0000 010 00 DOBIT 13-2 Petant Value of an Annuity of 51 in Arrat Pero 5% 63 35 95 15 199 199 20% 22 2 249 250 09020.952 0943 0935 0926 0.90 0.909 0.901 0893 0.385 0977 0.870 0.862 0.855 0.847 0.840 0.833 0026 0.820 0.03 0.000 0.500 2 1995 185 1833 1808 1783 1759 1736 1713 1690 1668 1547 1626 16051585156615471528 50914921474 157 1440 3 2773 2.722 2.673 2624 2.577 2531 2487 2444 2.402 2.361 2.322 2.283 2286 2210 274 2140 2006 2074 2012 2011 1981 1952 4 3630 3515 2465 33873312 3.240 310 3102 3037 2.914 2.914 2855 2.798 2.143 2690 2.539 2.5892540 2491 2.413 2404 2362 5 4452 4329 4212 4.100 1993 3.8903791 3096 3.605 1517333 3352 374 3199 327 3058 2991 2928 2854 2803 27452589 6 5243 5076 4912 4757 4623 4480 355 4.2314 3.998 3.099 1784 365 3.589 3490 3.40 3326 3245 397 3.092 3.020 2951 7 60025706 5582 539 5206 5.033 468 4712 4554 422 4238 4150 4009 1922 381237067505 3.508 3.45 3.377 3.242 3.561 8 6.733 6.100 6.210 5.971 5747 5575 5335 555 4.908 4.299 4609 4487 434442074078 3.954 3.807 3726369 3.515 3.421 3.329 9 2405 2108 6302 6,515 6242 5.995 5759 5537 5378 5024946 47724 507 4651 4303 0834001 3.905 1706 367 3566 7463 10 7722 2360 20M 6710 6145 5899 5650 5.426 5216 5.099 4833 4659 4494 43394192454 1923 3799 1802 3571 11 8.760 0.3067887 7499 909 6.00564956207 5.938 56875453 5.23 5.029 48364556 44064.327 4.7 4.0352902 3.7783656 93858.86114 79837526 2161 6.9146492 6194 59185660 5421 5197 4599 47934611 439 42734120 2916520513725 13 9.9959394 05 0.358 2904 7402 703 6.750 6.424 6.222 5.842 5.583 5.342 5113 49107 453043822034053 1912 3780 14 105639199 9.2958345 244 7786 73676902 5628 6302 6002 5724 5.25852295008 4902 461 432 4265 4101 1962 3824 15 118 10380972 900 8.558 8.00 76067191 8.815.052 61425.841 5.575 5.326 5.092 475 475 4.409 4.75 453 4001 859 16 11652 10.838 103069447 3.85 3.30 7824 2379 6974 6,604 6265 5956 5665 540 5562 293 4730536 437 499 4033 1887 17 12.366 1127410.4779783 9122 8022 7549 2120 67296373 604757295475 5222 4990 47754578 439 421906 1910 11 12659 1890 10.2010059 93728.756 8.201 77027250 6.540 0.07 6126 58185534 5.273 5.093 8124508424340803928 19 3134 12.065 11.158 10.336 9.004 1.950 3.365 7809 7366 6.938 6550 61905877 5554 5.3 5020 40 40 42 443 2097 392 20 125901240211470 10554018 9129 3514 798374697025 6623 6259 5.929 562 553 5501 400 4657 4460427940 2054 14029125211764 300350179292 1549 105 25627802 65876325.9735.665 5.384 51279916754.476 4292412 22 3903 1445113.960 120121001 10 201 9:42 8.772 10 2665700 6706359601 5.6 5.410 5519 490945904302450 1920 23 14.057 3.400 12.303112720.371 9580 BB 206 27 7230 67926.1998.046 5722 502 5567 925 1993 29 24 15.747 1279912650 14600529 9.707 SS 33482704 7203 610356434 6.073 5746 5.4015502 49370 25 155221004 273 1654 4507 9.072 3.42277230 65736464 0975700 5.65759549424721 451 427 30 25 15 983 375 73.003118260909.929 101 3407890772 6006 6:4916.118 5.783 5.450.5.206 950 472 4520 43284 195 22 16330 MO 3:21 1987 10.035 032 92375 790 7609 6.935 65 66 28 57995482 5.215 4554 734 934 04154 1950 15.663 1498 110 11050 2016 9.307 360279047401 6.961 5534 6152 S5502 52234970472945284316052992 29 18964 534 1359122711175690990 937080503022770 10 5820559052299555 1729215312 31765 3.409 112581021494275694055 797003 6.566 6177 1904 5829502 S235970476534 00 1955 19.793 12:15 15045 1.302 10925 90757977989912476347 6612622575585258 499 470 54150 4156 2909 = Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product Product B Payback period yoon years Req2 > Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value Calculate the internal 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 Products Internal rate of retum & Req2 Req4 > Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product Product Profitability index Req3 Reqs > 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 Products Simple rate of return