Problem $14-23($Algo$)$ Comprehensive Problem $[$LO$14-1,$ LO$14-2,$ LO$14-3,$ LO$14-5,$ LO$14-6]$

Lou fariaw, a chithional menager for Suge Compsny, las an opporianty to manufacture and sall one of tivo new products for a fiveyear period the annual phy rabes are cistermined by his dvisian's return on imesimert Ifon which has axceoded $243$ each of the last tree years. He compuhed the following cosil and reven wis estimoted for each preduct

$\backslash$table$[[,$Pritouth a$,$mrsaite$],[\backslash$table$[[$ToLtial investment;$],[$Cool of equipetet $[2$era salvige wnice$)]],$$ $7017,030,5515,690],[$Amrsel fewreues ent costs:,$\%390,000,\%470,000],[$Snles feverusen.,$\%168,200,$S $228,000],[$Whriabie expenves,,$5198,164],[$Leprecialion expertes,$582,100,588\mathrm{.}8003],[$Faseo dat of$-$pociet operating emats,,$]]$

The companty's discount rate is $15\%.$

Cack twhe to them Exthit $148-1$ and Exhlall $148-2,10$ determine the appropriate cisfount factorisi using thbles.

Required:

Calculane each produrts prytace period.

$2$ Coloulste ench products net presemt valusi.

$3.$ Calculate eoct productis inlernal rate of neturn.

$4.$ Criculase wach product's proftabilit indax.

$5$ Celculete ench modurts smple rate of return.

Ga$.$ For eoch messune. Idertify whether Product A or Product lis is preberred.

$6$b$.$ Bavied on the simple rone of return, whikh of the two products should Lou's division mecept?