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Lou Bariow, 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 22% 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 20% Required (Use Excel for 2 - 4): 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. 6a. For each
measure, Identify whether Product A or Product B is preferred. 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.) The company's discount rate is 20% . Required (Use Excel
for 2 - 4): 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. 6a. For each measure, identify whether Product A or Product
B is preferred. Complete this question by entering your answers in the tabs below. Using Excel,
calculate the net present value for each product. (Round your final answers to the nearest whole
dollar amount.) The company's discount rate is 20% . Required (Use Excel for 2 - 4): 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. 6a. For each measure, identify whether Product A or Product B is
preferred. Complete this question by entering your answers in the tabs below. Using Excel,
calculate the internal rate of return for each product, (Round your percentage answers to 1
decimal place l.e. 0.123 should be considered as 12.3% .) The company's discount rate is 20% .
Required (Use Excel for 2 - 4): 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. 6a. For each measure, identify whether Product
A or Product B is preferred. Complete this question by entering your answers in the tabs below.
Calculate the profitability index for each product. (Round your answers to 2 decimal places.) The
company's discount rate is 20% , Required (Use Excel for 2 - 4): 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. 6 . For each
measure, identify whether Product A or Product B is preferred. Complete this question by
entering your answers in the tabs below. For each measure, identify whether Product A or
Product B is preferred.

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Lou Bariow- a divisional manager for Sage Company- has an opportunity.pdf

  • 1. Lou Bariow, 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 22% 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 20% Required (Use Excel for 2 - 4): 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. 6a. For each measure, Identify whether Product A or Product B is preferred. 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.) The company's discount rate is 20% . Required (Use Excel for 2 - 4): 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. 6a. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. Using Excel, calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) The company's discount rate is 20% . Required (Use Excel for 2 - 4): 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. 6a. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. Using Excel, calculate the internal rate of return for each product, (Round your percentage answers to 1 decimal place l.e. 0.123 should be considered as 12.3% .) The company's discount rate is 20% . Required (Use Excel for 2 - 4): 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. 6a. For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. Calculate the profitability index for each product. (Round your answers to 2 decimal places.) The company's discount rate is 20% , Required (Use Excel for 2 - 4): 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. 6 . For each measure, identify whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. For each measure, identify whether Product A or Product B is preferred.