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Lou Barlow, a divisional manager for Soge Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His

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Lou Barlow, a divisional manager for Soge Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROl), which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for eoch product as follows: The company's discount rate is 19% Clikhere to view Exhibit 128.1 and Exhibit 128-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for eoch product. 2. Colculate the net present value for eoch product. 3. Calculate the intemal rate of return for each product. 4. Calculate the profitablity index for each product. 5. Calculate the simple rate of return for eoch product. 6a. For each measure, identify whether Product A or Product B is preferred. 6b. 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 the payback period for each product. (Round your answers to 2 decimal places.) Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amoun Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place I.e. 0,123 should considered as 12.3\%.) Calculate the proftability index for each product. (Round your answers to 2 decimal places.) Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place I.e. 0.123 shou cansidered as 12.3%. For each measure, identify whether Product A or Product B is preferred. Bssed on the simple rate of return, which of the two products should Lou's division accept? \begin{tabular}{|l|} \hline Accept Product A \\ \hline Accept Product B \\ \hline Reject both producis \\ \hline \end{tabular} Lou Barlow, a divisional manager for Soge Company, has an opportunity to manufacture and sell one of two new products for a fiveyear period. His annual pay raises are determined by his division's return on investment (ROl), which has exceeded 21% each of the last three years. He has computed the cost and revenue estimates for eoch product as follows: The company's discount rate is 19% Clikhere to view Exhibit 128.1 and Exhibit 128-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for eoch product. 2. Colculate the net present value for eoch product. 3. Calculate the intemal rate of return for each product. 4. Calculate the profitablity index for each product. 5. Calculate the simple rate of return for eoch product. 6a. For each measure, identify whether Product A or Product B is preferred. 6b. 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 the payback period for each product. (Round your answers to 2 decimal places.) Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amoun Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place I.e. 0,123 should considered as 12.3\%.) Calculate the proftability index for each product. (Round your answers to 2 decimal places.) Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place I.e. 0.123 shou cansidered as 12.3%. For each measure, identify whether Product A or Product B is preferred. Bssed on the simple rate of return, which of the two products should Lou's division accept? \begin{tabular}{|l|} \hline Accept Product A \\ \hline Accept Product B \\ \hline Reject both producis \\ \hline \end{tabular}

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