Question: make sure to do for a and b as well thankyou Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and
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 (ROD), which has exceeded 25% 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 19% Click here to view Exhibit 128-1 and Exhibir 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 retum 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 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 the payback period for each product. (Round your answers to 2 decimal places.)
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