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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 20% 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) $ 260,000 $ 470,000 Annual revenues and costs: Sales revenues $ 310,000 $ 410,000 Variable expenses $ 144,000 $ 194,000 Depreciation expense $ 52,000 $ 94,000 Fixed out-of-pocket operating costs $ 76,000 558,000 The company's discount rate is 18% Click here to view Exhibit.128.1 and Exhibit 120.2. 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 preferred 6b Based on the simple rate of return Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Red 2 Red Reg 4 Reg 5 Reg Reg 68 Calculate the payback period for each product. (Round your answers to 2 decimal places) Product A Products Fixed out-of-pocket operating costs $ 76,000 $ 58,000 The company's discount rate is 18% 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 preferred 6b Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Req3 Reg 4 Req 5 Req6A Reg 6B Calculate the payback period for each product. (Round your answers to 2 decimal places) Product B Payback period Product A Years years Reg 2 > Fixed out-of-pocket operating costs $ 76,000 $ 58,00 The company's discount rate is 18% Click here to view Exhibit 128-1 and Exhibit:128-2. 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 60. For each measure, identify whether Product A or Product B is preferred 66. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Red2 Req3 Reg4 Regs Reg Reg 6 Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount) Product A Product B Not present value Click here to view Exhibit 128.1 and Exhibit 128-2. 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 6. For each measure, Identity whether Product A or Product B is preferred 6b Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg2 Reg 3 Reg 4 Reg Req6A Reg 6 Calculate the internal rate of return for each product. (Round your answer to I decimal place Le 0.122 should be considered 0 12.3%) Product A Product B Intemal rate of retum (Reg 2 Reg 4 > $ 76,000 $ 58,000 The company's discount rate is 18% Click here to view Exhibit 12B-1 and Exhibit 128-2. 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 preferred. 6b Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Roq 6A Reg 68 Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index The company's discount rate is 18% Click here to view Exhibit 12B1 and Exhibit 2B-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 6. For each measure, identify whether Product A or Product B is preferred 66. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg Reg4 Fas Reg A Req 68 Calculate the simple rate of return for each product. (Round your answer to 1 decimal place .. 0.123 should be considered as 12.3%) Product A Products Simple rate of retum Fixed out-of-pocket operating costs $ 76,000 $ 58,000 The company's discount rate is 18% Click here to view Exhibit 128:1 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 preferred 6b. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. ROOGA Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6B For each measure, identity whether Product A or Product B is preferred. Net Present Profitability Payback Intemal Rate Simple Rate of Value Index Period of Return Return 38,630 The company's discount rate is 18% Click here to view Exhibit 128.1 and Exhibit 128-2. 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 60. For each measure, identify whether Product A or Product B is preferred 66. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6 Love 68 Based on the simple rate of return, Lou Barlow would likely: Accept Product Accept Product B Reject both products