Problem 14-23(Algo) Comprehensive Problem [L014-1, LO14-2, LO14-3, LO14-5, LO14-6] Lou Barlow, a divisional...

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Accounting

Problem 14-23(Algo) Comprehensive Problem [L014-1, LO14-2, LO14-3, LO14-5, LO14-6]
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 24% each of the last three years. He computed the following cost and revenue estimates for each product:
\table[[Initial investment:,Product A,Product B],[Cost of equipment (zero salvage value),$330,000,$515,000
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