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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.

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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 17% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product 180,000 Initial investment Cont of equipment (tro malvage value Annual revenues and costat Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 260,000 124,000 $ 36,000 $ 71,000 $ 390,000 $360,000 174,000 78,000 50,000 The company's discount rate is 15% Click here to view Exbbt.123.1 and Exhibit 120.2. 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. 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. Reg 1 Reg 2 Regu Req Reg 5 Req 6A Reg 68 Calculate the payback period for each product. (Round your answers to 2 decimal places) Product A Product B years Payback period your Reg 2 > 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. Reg 1 Real Reg 3 Reg 4 Req 5 Req 6A Reg 6B Calculate the net present value for each product. (Round your inal answers to the nearest whole dollar amount.) Product A Product B Net present value 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. Req Reg 2 Reg 3 Reg 4 Reg 5 Reg GA Reg 68 Calculate the internal rate of return for each product. (Round your answer to 1 decimal place 0.123 should be considered as 12.396.) Product A Product Internal rate of rotum % 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. 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 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 68 Calculate the project profitability Index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index 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 Red 3 Req4 Reg 5 Reg 6 Reg 68 Calculate the simple rate of return for each product. (Round your answer to 1 decimal place le. 0.123 should be considered as 12.3%) Product A Products Simple rate of retum Click here to view Exhibit 12B-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. 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 Req3 Reg 4 Reg 5 Rea Reg 68 For each measure, Identify whether Product A or Product B is preferred Net Present Value Profitability Index Payback Period Internal Rate Simple Rate of of Return Return

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