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please help answer part 1-6B Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products
please help answer part 1-6B
Lou Barlow, a divisional manager for Sage 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 retum 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: The company's discount rate is 15%. Click here to view Exhibit 12B1 and Exhilbit 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 profitability index for each product. 5. Calculate the simple rate of retum for each product. 6a. For each measure, Identify whether Product A or Product B is preferred. 6 b. Based on the simple rate of return, which of the two products should Lou's division accept? Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the intemal rate of return for each product. 4. Calculate the 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. 6 b. 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.) Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the intemal rate of return for each product. 4. Calculate the profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6 b. 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 net present value for each product. (Round your final answers to the nearest whole dollar amount.) 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the intemal rate of return for each product. 4. Calculate the profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . For each measure, identify whether Product A or Product B is preferred. 6 b. Based on the simple rate of retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e, 0.123 should be considered as 12.3%.) Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the intemal rate of relum for each product. 4. Calculate the 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 retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) 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 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. 6 b. Based on the simple rate of retum, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Calculate the simple rate of return for each product. (Round your perentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) 1. Calculate the payback period for each product 2. Calculate the net present value for each product. 3. Calculate the internal rate of retum for each product. 4. Calculate the profitability index for each product. 5. Calculate the simple rate of return for each product. 6 . 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. For each measure, Identify whether Product A or Product B is preferred. 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 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. 6 b. 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. Based on the simple rate of return, which of the two products should Lou's division accept Step by Step Solution
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