Question: Please calculate Net Present Value (#2). Include in the work the following steps: Purchase of equipment, sales, variable expenses, fixed out-of-pocket costs, total cash flows,

Please calculate Net Present Value (#2). Include in the work the following steps: Purchase of equipment, sales, variable expenses, fixed out-of-pocket costs, total cash flows, discount factor, present value, net present value.

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 18\% each of the ist three years. He has computed the cost and revenue estimates for each product as follows

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