Question: PLEASE HELP! Its due tonight at midnight 5/6/22!!! Check 1 5 point Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture







Check 1 5 point Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and self one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (RON, which has exceeded 17% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Products Initial investments Cost of equipment (zero salvage value) $ 180,000 $ 390,000 Annual revenues and costs: Sales revenues $ 260,000 $360,000 Variable expenses $ 124,000 $ 174,000 Depreciation expense $ 36,000 $ 78,000 Fixed out-of-pocket operating costs $ 71,000 $ 50,000 The company's discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 148.2, 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 return for each product 6a. For each measure, identify whether Product A or Product is preferred. 6b Based on the simple rate of return, which of the two products should Lou's division accept? References Complete this question by entering your answers in the tabs below. Reg 1 Reo Reg 3 R4 Reg 5 Reg6A Re65 Calculate the payback period for each product. (Round your answers to 2 decimal places 0 This question will be sent to your instructor for grading. The company's discount rate is 15% Click here to view Exhibit 14B-1 and Exhibit 14B-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 return 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. es Reg 1 Reg 2 Reg 3 Req 4 Reqs Reg 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Hea Reg 2 > 1 The company's discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 148-2. 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 return 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? Book Hint Complete this question by entering your answers in the tabs below. prences Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 68 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value The company's discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 148-2. 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 return 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. ces Req 1 Req 2 plea 3 Reg 4 Reg 5 Req 6A Reg 68 Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place .e. 0.123 should be considered as 12.3%.) Product A Product B Internal rate of retum The company's discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 14B-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 return 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. Reg 1 Reg 2 Reg 3 Req Reg 5 Reg 6A Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Req 6B Product A Product B Profitability index The company's discount rate is 15%. Click here to view Exhibit 148-1 and Exhibit 14B-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 return 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. Reg 1 Reg 2 Req3 Reg 4 Reqs Req 6A Reg 68 Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place le. 0.123 should be considered as 12.3%.) Product B Simple rate of return Product A 1% The company's discount rate is 15%. Click here to view Exhibit 148-1 and Exhibit 148-2, 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 return 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. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate Simple Rate of of Return Return The company's discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 14B-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 return 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. Req1 Reg 2 Reg 3 Req4 Reg 5 Reg 6A te 68 Based on the simple rate of return, which of the two products should Lou's division accept? O Accept Product A Accept Product B Reject both products
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