anufacture 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 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product Initial investment Coat of equipment (zero salvage value) $ 290,000 $ 490,000 Annual revenues and costs Sales revenues $ 340,000 $ 440,000 Variable expenses $ 154,000 $ 206,000 Depreciation expense $ 58,000 $ 99,000 Fixed out-of-pocket operating costs $ 79,000 $ 59,000 The company's discount rate is 15%. 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. Reg 1 Reg 2 Req3 Reg 4 Req 5A Calculate the payback period for each product. (Round your answers to 2 decimal places.) Payback period Product A years Product B years Req2 > The company's discount rate is 15%. 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. Req 1 Re: 2 Req3 Req 4 Req 6A Using Excel, calculate the net present value for each product. (Round your final Product A Product B Net present value Reg 1 Reg 2 Req Reg 4 Req 6A Using Excel, calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Product A Product B Internal rate of return Req 1 Req 2 Reg 3 Req4 Req 6A Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Profitability Index Req 1 Reg 2 Reg 3 Req 4 Req 6A For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Payback Internal Rate Value Index Period of Return