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round all answers to 2 decimal places Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two

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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 fiveyear period. His annual pay raises are determined by his division's return on investment (ROl), which has exceeded 17% 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%. Required (Use Excel for 2 - 4): 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Caiculate the internal rate of return for each product. 4. Calculate the profitablity index for each product. 6a. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. 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 (ROl), which has exceeded 17% 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%. Required (Use Excel for 2 - 4): 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Caiculate the internal rate of return for each product. 4. Calculate the profitablity index for each product. 6a. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below

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