Lou Darow, a divisional manager for Sage Company has an opportunity to manufacture and self 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows Product $410,000 Titial instant cost of there are value) al events and costs sales rever Variables Depreciation expert Find out-of-pocket price w 13,00 30,000 $190,00 1182.00 $4.000 $2.000 13.00 S. $ The company's discount rate is 10% Click here to view Ext and Ex70.2 to determine the appropriate discount factor using tables 3. Calculate the internal rate of return for each product. Calculate the internal rate of return for each product to yours to 1 decimal 123 shald be considered Product Protect malam 4. Calculate the project profitability index for each product. Calculate the project profitability inde for each product Round you to decimal places) Product Products Project prosty S. Calculate the simple rate of return for each product. Calculate the simple of we for each product on your de 0.123d become 12 6. For each measure, identify whether Product A or Product B is preferred. Forsche, dentify whether Products Product la pered IN wwwwww DEN wo www wwwww 11 - ES Lou Darow, a divisional manager for Sage Company has an opportunity to manufacture and self 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows Product $410,000 Titial instant cost of there are value) al events and costs sales rever Variables Depreciation expert Find out-of-pocket price w 13,00 30,000 $190,00 1182.00 $4.000 $2.000 13.00 S. $ The company's discount rate is 10% Click here to view Ext and Ex70.2 to determine the appropriate discount factor using tables 3. Calculate the internal rate of return for each product. Calculate the internal rate of return for each product to yours to 1 decimal 123 shald be considered Product Protect malam 4. Calculate the project profitability index for each product. Calculate the project profitability inde for each product Round you to decimal places) Product Products Project prosty S. Calculate the simple rate of return for each product. Calculate the simple of we for each product on your de 0.123d become 12 6. For each measure, identify whether Product A or Product B is preferred. Forsche, dentify whether Products Product la pered IN wwwwww DEN wo www wwwww 11 - ES
