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need help with 2-6! lou barlow a divisional manafer for sage company has an opportunity to manufacture and sell one of the two new products

need help with 2-6!
lou barlow a divisional manafer for sage company has an opportunity to manufacture and sell one of the two new products for a five year period. image text in transcribed
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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 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Products Initial investment: Cost of equipment (zero salvage value) $ 390,000 $ 585,000 Annual revenues and costs Sales revenues $ 420,000 $ 500,000 Variable expenses $ 185,000 $ 222,000 Depreciation expense $ 78,000 $ 117,000 Fixed out-of-pocket operating costs $ 90,000 $70,000 The company's discount rate is 21%. 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. 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 Req 2 Req3 Reg 4 Req 5 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 B Net present value Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Req 5 Req 6A Req 6B Calculate the project profitability index for each product. (Round your answers to 2 decimal plac Product A Product B Project profitability index ering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Reg 5 Req 6A Req 6B Calculate the simple rate of return for each product. (Round your answer to 1 decimal place i.e. 0.123 as 12.3%.) Product B Simple rate of return Product A % % Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req 4 Reg 5 Req6A Req 6B For each measure, Identify whether Product A or Product B is preferred. Net Present Profitability Payback Internal Rate Simple Rate of Value Index Porlod of Return Return Complete this question by entering your answers in the tabs below. Req 1 Req2 Req3 Req 4 Reg 5 Reg 6A Req 6B Based on the simple rate of return, Lou Barlow would likely: Accept Product A Accept Product B Reject both products

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