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r1[1(1+r)n1] Complete this question by entering your answers in the tabs below. Calculate each product's internal rate of return. Note: Round your percentage answers to
r1[1(1+r)n1] Complete this question by entering your answers in the tabs below. Calculate each product's internal rate of return. Note: Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%. Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred. 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 return on investment (ROI), which has exceeded 19% each of the last three years. He computed the following cost and revenue estimates for each product: The company's discount rate is 16%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Calculate each product's payback period. 2. Calculate each product's net present value. 3. Calculate each product's internal rate of return. 4. Calculate each product's profitability index. 5. Calculate each product's simple rate of return. 6 a. 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 each product's payback period. Note: Round your answers to 2 decimal places. 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? EXHIBIT 14B-1 Present Value of $1;(1+r)n1 Complete this question by entering your answers in the tabs below. Calculate each product's net present value. Note: Round your final answers to the nearest whole dollar amount. Complete this question by entering your answers in the tabs below. Calculate each product's simple rate of return. Note: Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%. Complete this question by entering your answers in the tabs below. Calculate each product's profitability index. Note: Round your answers to 2 decimal places
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