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please answer questions completely.

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 21% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 210,000 $ 420,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 290,000 $ 138,000 $ 42,000 $ 74,000 $ 390,000 $ 186,000 $ 84,000 $ 54,000 The company's discount rate is 19%. Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factor using tables EXHIBIT 7B-1 Present Value of $1: Periods 4% 5% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 225 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0917 0.909 0901 0.893 0885 0877 0.870 0862 0855 0847 0.840 0.833 0.826 0820 0813 0.806 0.800 2 0.925 0.907 0.890 0.873 0.857 0842 0826 0812 0797 0783 0769 0.756 0743 0731 0718 0706 0.694 0683 0672 0661 0650 0.640 3 0.889 0864 0.840 0.816 0.794 0772 0751 0731 0712 0693 0675 0658 0641 0624 0609 0593 0579 0.564 0.551 0.537 0524 0.512 4 0 855 0823 0.792 0.763 0.735 0708 0.683 0659 0636 06130592 0.572 0552 0534 0.516 0.499 0482 0467 0.451 0.437 0.423 0.410 5 0822 0784 0.747 0713 0681 0650 0621 0 593 0567 0543 0519 0497 0476 0456 0437 04190402 0.386 0.370 0.355 0.341 0328 6 0.790 0 746 0705 0666 0530 0.596 05640535 0507 0480 0.456 0.43Z 0410 0.390 0370 0.352 0335 0.319 0.303 0.289 0.275 0.262 0.760, 07110665 0.623 0583 0.547 0.513 0482 0.452 0.425 0.400 0.376 0354 0.333 0314 0296 0.279.0.263 0249 0235 0222 0.210 8 0731 0677 0.627 0.582 0540 0502 0.467 0434 0404 0.376 0351 0.327 0.305 0285 0.266 0249 0233 021802040191 01790168 9 07030645 0.592 0.544 0.500 0.460 0424 0.391 0.361 0.333 0308 0284 0.263 0243 0.225 0209 0.194 0.1800167 0.155 0.144 0.134 10 0676 0.614 0.558 0508 0.463 0.422 0.386 0352 0.322 0295 0270 0247 0.727 0208 0191 0176 0162 014901370126 0116 0.107 11 0650 0585 0527 0475 0.429 0388 0350 0.317 0.287 0.261 0237 02150195 0178 0162 0148 013501230112 0103. 0094 0,086 12 0.625 0.557 0.4970444 03970356 0.319 0.286 0.257 0.231 0208 0.187 0168 0.152 0.1370124 01120102 0092 0.083 0.076 0.069 13 0601 0530 7469. 04150368 0326 0.290 0258 0.229 0204 0182 0163 0145 0.30 0.116 0104 0093 0084 00750068 0.061 0.055 14 0577 0505 0442 0388 0340 0299 0.263 0232 0205 01810160 0141 0.125 0.111 01099 0088 0078 0069 0.062 0055 0049 0044 15 0555 0.481 0.417 0362 0 315 0275 0.239 0.209 0.183 0.160 0140 0,123 0109 0095 0.084 0.074 0,085 0057 0051 0.045 0040 0.035 16 0534 0-458 0394 0339 0292 0252 0218 0188 0163 0 141 0123 0907 0093 0081 0.071 0,062 0054 0.047 0042 0,036 0032 0.028 17 0513 0.436 0371 0317 0270 0231 0198 01700146 0.125 0108 0093 0.0800059 0.060 0,052 0.045 0.039 0034 0.030 0.025 0.023 18 0.494 0.416, 0.350 0.296 0.250 0212 0180 0153 0.130 0.111 0095 0081 10 069 0059 0051 0.044 0038 0.032 0.028 0.024 0.021 0.018 19 0475 0396 0331 0272 0232 0194 0164 01380116 0,098 0083 007000600051 0043 0037 0031 0027 0023 0.020 0:0170014 20 0.456 0.377 0312 0 258 0215 0.178 0.149 0124 0104 0.087 0073 0061: 0051 0043 0.037 0031 0025 0.022 0.019 0.016 0.014 0.013 21 0439 0359 0294 0 242 0199 0164 0135 0112 0093 0.077 0064 0053 0044 0037 0.031 0026 0.022 0.018 0015 0.0130011 22 0422 0342 0278 0.226 0184 0150 0123 0101 003 0068 0056 0046 0038 0032 0.025 0022 901B 0015 0,013 0011 0.0090007 23 0.406 0.326 0 262 0211 0170 0138 0.112 0091 0.074 0.060 0049 0.040 033 0027 0.022 0.018 00150012 0.010 0.00 0.007 0006 24 0 390 0310 0.247 0197 01580126 0102 0082 Cos 0053 004 0035 028 002 0019 0015 0013 0010 0.008 0.007 0006 0005 25 0375 0295 0.2330184 0.145 0115 0092 0074 0.059 0047 0038 0030 0024 0020-0016 000 000 oong 0.007 0.006 0005 0904 26 0,361 0.281 0220 0172 0.135 0.106 0084 0.066 0.053 0042 003 0026 0021 002 0014 000 0009 0.007 0.006 0.005 0.004 0003 27 0347 0268 (207 0161 0125 09 0076 0060047 903) 0079 0093 01 014 01 170097 0005 0.005 0,004 0003 0002 28 0333 0 255 0 196 0150 0,115 0.000001690050 0042 0033 0026 0020 0016 0.012 0.008 1:00 0004 0.003 0.002 0,002 29 0321 0243 0185 0141007 0062 0,063 0048 037 0025 022 0017 0014 On 0 0005 0005 004 0.003 0.002 0.002 0.002 30 0308 0231 0.174 0131 0099 075 052044 23 026 020 0015 00120g 0,00 000 0.00302-718922007 40 0 208 0142.0.097_0067 0046 0982 02205 bis 005 ob 0.003 002 000 cool 0000 0000 000 0000 0.009 EXHIBIT 70-2 Prozent Value of an Annuity of S1 in arrears: [-- ---] Periods 4% 6% 7% 8% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 1 0.962 0.952 0.943 0935 0926 0.917 0909 0901 0893 0885 0.877 0870 0862 0855 08470840 0833 0.826 0820*0.813 0.806 0.800 21.886 1859 1.833 1.808 1783 1759 1736 1713 1690 1668 1647 1626 1605 1.585 1.566 1547 1528 1509 1492 1474 1457 1440 3 2.775 2723 2.673 2624 2.577 2531 2487 2444 2402 2361 2322 2283 2246 2210 2174 210 2106 2074 2042 2011 1981 1952 4 3.630 3.546 3.465 3387 3.312 3240 3170 3102 3037 29742914 2855 2798 2743 2690 2639 2589 2540 2494 2448 2.404 2.362 5 4.452.4329 4.212 4.100 3.993 3890 3.791 3696 3605 3.517 3.433 3.352 3.274 31993.127 3058 2991 2926 2864 2803 2.745 2689 6 5242 5076 4917 4.767 4623 4486 4.355 4231 4111 3.9983889 3.784 3.685 3.589 3.498 3.410 3326 3245 3167 3.092 3.020 2.951 7 60025786 5582 5.389 5206 5033 4 868 4712 4561 4.123 A288 4160 1039 3922 3812 3706 3 605 3 508 3416 3327 3212 3161 8 6.733 6.463 6.210 5.971 5747 5.535 5 335 5.146 4.968 4.799 4639 4487 4344 4207 4079 3.954 3.837 3.726 3.619 3.518 3.421 3.329 9 7435 7108 6.802 6.515 6 247 5.995 5759 5537 5328 5.132 4946 4772 4607 4451 430341634031 3.905 3786 3673 3.566 3.463 10 8111 7722 7360 7024 6710 6.418 61455889 5650 5426 5 216 5019 1,833 4659 4494 43394192 40543923 3799 3682 3571 11 8.760 8306 7887 7.499 7139 6.805 6.495 6 207 5.938 5687 5453 5234 5.029 4836 4656 4486 4327 4.1774,035 3.902 3776 3.656 12 9.385 8863 8.384 7.943 7536 7161 6.814 6.492 6 194 5.918 5660 5421 5197 4988 4793 4611 4439 4 278 41273.985 3.851 3.725 13 9.986 9 394 8.853 8.358 7904 7487 7103 6.750 6.424 6122 5842 5583 5 342 5118 4.910 4715 4533 4362 4.203 4053 3912 3780 14 10.563 9.8999295 8745 8.244 7786 7367 6.982 6.628 6.302 6.002 5.724 5468 5.229 5.008 4.802 4.611 4432 4265 4108 3.962: 3.824 15 11118 10 3809712 9108 8559 8061 7606 7191 6811 6.462 61425 847 5 575 5,324 5092 4876 4675 4489 43154153 4001 3.859 16 11652 10.838 10 106 9447 8851 8313 7824 7.379 6.974 6.604 6.265 5 954 5668 5:405 51624938 4730 4536 4357 4.189 4.033 3.887 17 12.166 11274 10.477 9763 9.122 8.544 8022 7549 7120 67296373 6.047 5.749 5.475 5222 4990 4775 4576 4391 4219 4059 3910 18 12 659 11590 10828 10 059 9312 8756 8201 7702 7.250 6810 6.467 61285818 5534 5.273 5.033 812 4608 4419 42434080 3.928 19 13.134 12.085 11158 10336 04 89508365 7839 7366 6938 6550 6.198 5.877 5584 S316 5070 4.8434635 4142 4.263 4.097 3.942 20 13.590 12 462 11.470 10.594 9818 9.129 8.514 7963 7.469 7025 6623 6.259 5.9295.628 5.353 5101 4.870 4657 4460 4.2794.110 3.954 21 14.029 12.821 11.764 10.836 10.077 9292 8649.8.075 7.562 7102 6687 6312 5973 5.665 5384 5127 4.891 4675 4.476 4.292 4121 3963 44451 13 163 12 042 11061 10 201 9442 87728.1767645 7170 6743 6 359 60115696 5410 5149 4.909 4690 4.488 4302 4130 3.970 23 14.857 13.489 12.303 1 272 10.371 95808 883 8.266 7718 7220 6792 6.399 6044 5723 5432 5167 4925 4703 4499 4311 4137 3.976 24 157247 3799 1550 11469 10.529 9707 8.985 8.348 7784 7283 6.8356 434 6073 5746 5451 5182 493773 4.507 1318 4143 3981 25 15.622 14 094 12783 41654 10 675 9.8239.077 8.422 7.843 7330 6.873 6.454 6.097 5.766 5.467 5.1954.948 4.721 4.514 4.323 4.147 3.985 26 15.983 1375 1300311826 108109.929 9161 8.488 7896 7372.6906 6.4916118 57835480 5 205. 1956 778 4520 4328 1.151 3.988 27 36 330 14643 13.217 11987 10.935 10.027 9.237 8548 7943 7409 6.935 6514 6136 5298 5.492 5 215 4964 4734 4 524 4 332 41543990 28 56.663 14898 13.406 2.137 11051 10.116 9.807 8.602 7984 74415.961 6934 6.152 5810 5502 $223 4970 4739 4.528 4.335 4.157 3.992 29 36 984 15.11 12.5 12.278 11-58 10 1989 370 8650 B027 7470 6.983 6551 6165 5820 5510 52294.975 4743 4531 4337 4159 3994 30 17.292 15 372 13,765 2.409 11258 10.214 9 427 8.694 BOSS 74916 2003 6.566 6177582955175.235 929 4746 4534 43394160 3.995 40 19.793 17159 15.000 13 R32 41925 70 75797798951 8244 763 71055642 2335871 5548 5.258 1997 476045444317 4165 3999 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index Calculate the simple rate of return for each product. (Round your answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Product A Product B Simple rate of return % For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate Simple Rate of of Return Return