Question: Please help me with the attached document that is below. Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell

 Please help me with the attached document that is below. Lou

Please help me with the attached document that is below.

Barlow, a divisional manager for Sage Company, has an opportunity to manufacture

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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs Product B $ 270,000 $ 480,000 $ 320,000 $ 148,000 $ 41,000 $ 77,000 $ 420,000 $ 198,000 $ 83,000 $ 57,000 The company's discount rate is 19%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A (years) Product B (years) Payback period 2. Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.) Product A Product B Net present value 3. Calculate the internal rate of return for each product. (Round percentage answer to 1 decimal place. i.e. 0.1234 should be considered as 12.3% and Round discount factor(s) to 3 decimal places.) Product A (%) Product B (%) Factor of the internal rate of return 4. Calculate the project profitability index for each product. (Round discount factor(s) to 3 decimal places. Round your answers to 2 decimal places.) Product A Project profitability index Product B 5. Calculate the simple rate of return for each product. (Round percentage answer to 1 decimal place. i.e. 0.1234 should be considered as 12.3%.) Product A (%) Product B (%) Simple rate of return 6a. For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Rate 6b. Based on the simple rate of return, Lou Barlow would likely: 6b. Based on the simple rate of return, Lou Barlow would likely: Accept Product A Accept Product B Reject both products

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