Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one 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 199 each of the last three years. He has computed the cost and revenue estimates for each product as follows Pendut Product 550.000 $ 100,000 THE Lnvesti Cost of the salvage Value Am revenues and con Sales Variable expec Depreciations Fixed-of-pocket operating costs $ 270.00 $ 150.000 4. $ 60.000 5.300.000 510.00 $ 30.000 560.000 The company discount rate : 16% Click here to view Ext 148.1 and EN 1482. to determine the appropriate discount factor using tables Required Ce the payback period for each product, 2. Calculate the present value for each product 3. Calcolate the internal rate of return for each product 4.Calculate the profitability index for each product 5. Calculate the simple rate of relian for each product ta For each measure Identity whether Product A or Product B is prefened. 6b Based on the simple rate of return which of the two products should Lous division accept Reg1 Reg 2 Req3 Reg 4 Req5 Req 6A Req 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product Net present value Reg 1 Reg 2 Reg 3 Reg 3 Reg4 Reg 5 Reg 6A Reg 68 Calculate the internal rate of return for each product. (Round your percentage answers to I decimal place Le 0.123 should be considered as 12.3%) Product Product Intumaltate of totum Reg 1 Reg 2 Reg 3 Ren 4 Reg 5 Req 6A Raq 6B Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Products Profitability Index Req1 Red 2 Reg 3 Reg 4 Reg 5 Red 6A Req6B 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 Product B Simple rate of retum (Reg4 Req6A > ME Reg 1 Reg 2 Reg 3 Reg4 Reg 5 Reg 6B Reg 5A RogGA For each measure, Identify whether Product A or Product B is preferred. Not Present Value Profitability Index Payback Period Internal Rate Simple Rate of of Return Return