# I only need required questions 2, 3, and 4 answered. Problem 12-23 Comprehensive Problem [LO12-1, LO

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I only need required questions 2, 3, and 4 answered.

Problem 12-23 Comprehensive Problem [LO12-1, LO12-2, LO12-3, LO12-5, LO12-6] Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 25 % each of the last three years. He has computed the cost and revenue estimates for each product as follows Product A Product B Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: $340,000 $525,000 Sales revenues $380,000 $480,000 $172,000 s 68,000 Variable expenses Depreciation expense Fixed out-of-pocket operating $225,000 $105,000 S 83,000 $ 66,000 costs The company's discount rate is 17 %. Click here to view Exhibit 12B-1 and Exhibit 12B-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 project 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 preforred 6b. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 6B Req 6A Req 5 Req 4 Req 3 Rea 2 Reg 1 e nearest whole dallar amount.”

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