Chapt 7 Q3 4-6. Please help and show work so I understand. Thank you.

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 23% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product Initial investment Cost of equipment (zero salvage value) $390,000 $ 535,000 Annual revenues and costs Sales revenues $420,00 $500,000 Variable expenses $ 185,000 $ 222,000 Depreciation expense $ 78,000 $112.000 Fixed out-of-pocket operating costs $90,000 $70,000 The company's discount rate is 21% Click here to view Exhibit7B-1 and Exhibit7B 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 DOIT 70-1 Present Value of the 5% 8 Periods 4 5 75 95 10% 1TL 12 15% 16% 17 191 201213 1 22 23 24 251 0962 0952090 0935 0926 0917 0909 0901 0893 0.885 0877 0870 0862 0855 0817 0840 089 0826 082008D 0806 0800 2 0925 0907 0890 0873 0857 0842 0.826 0812 0797 0783 0769 0756 073 0731 078 0706 069 0683 067205610650 0640 3 0889 0864 0840 0816 0794 072 0751 0731 0712 0693 0675 0658 0641 064 0609 059) 0579 0564 0.551 0537 0524 0512 4 0855 0823 0792 0763 0735 0708 0.683 0659 0636 0613 0592 05720552 0534 0516 0499 0482 0.467 0451 047 0423 0410 5 0822 0784 077 070 0681 0650 0621 0593 0567 053 0519 0497 0475 0456 0437 0419 0402 0.386 03700355 0.21 0.328 6 07900746 0705 0666 0630 056 0564 0535 0507 0450 0456 0.432 0.41 0.390 0.370 0352 0335 0.39 0.303 0289 0275 0262 7 0760 0711 0665 0623 0583 0542 050 0482 0.452 0425 0400 0376 0354 0333 034 0296 0.279 020 0249 0235 0222 0210 B 0731 06770627 0.582 0540 0.502 0 467 0.434 0.404 0.376 0351 0.327 0305 0285 0266 0249 02390218 0204 0191 01790168 9 07030645 0 592 0544 0.5000 460 0424 0391 0.361 0333 0308 0284 0263 0243 0225 0209 0194 01800167 0155 0944 034 10 0676 0614 0.558 0508 0463 0422 0386 0352 0322 0295 0270 0247 0227 0208 0191 0176 0362 0949 013? 0126 0116 0107 0650 0545 05270475 0429 0388 0350 0312 0287 0261 0237 02150195 0178 0162 OMB 0135 01230112 010 0094 0086 12 0625 0557 0.497 0.444 0397 0.356 0319 0286 0257 0231 0208 0187 0168 0152 0137 0124 012 0102 0092 0083 00760069 0 601 0530 0469 04150368 0326 0.290 0258 0229 0204 0182 0163054501300116 0904 0093 0084 0075 0.068 0061 0055 14 0.577 0505 0442 0388 0340 0299 0263 0232 0205 010360 0141 0125 0110099 OORS 0078 0069 00620055 0049 0044 15 0555 0 481 0417 0362 0.315 0275 0239 0209 0183 0160 05001230108 00950084 0074 0056 0057 00510045 0040 0035 0534 0458 0.394 0.339 0292 0252 0218 0188 0153 01410123 0907 0093 008 007 0062 0054 0047 00420036 0032 0028 17 0500436 0.371 03170270 0231 0198 0170054601250108 0093 080 006A 0050 0052 0045 0039 0034 0000 0026 0023 049 0416 0.750 0.296 0250 0212 01800153 01300111 0095 0.081 0069 0059 005 004 0038 00320028 00240021 0018 19 0475 0196 0.331 0277 0232 0194 0164 Ons 0116 0098 0083 007000600051 000 0037 0031 0027 0023 0020 0011 001 20 0 456 0377 0.12 0258 021501780449 01240104 0087 0073 0061 0051 0043 0037 01 0026 0022 0019 00160080012 21 0409 0 159 0.294 0242 0199 0364 005 01120093 007 0064 0053 0044 00370031 0026 0022 01 005 000 000 0009 22 0422 0342 0218 0.226. 0184 015001230101 0083 006 0055 0046 0038 0032 0026 0022 000 00150000010009 0007 0406 0.126 0202 021101700138 0112 0091 0074 0060 0089 00400032 0.027 022 0018 60150012 000 0000 000 0006 0 290 01100247 6197 01540126 0902 02 0066 0053 0043 0035 0028 0023 009 00150011 0010 000 000 0006 ODOS 0375 0295 02330184 01501160092 0074 0059 0047 0038 000 0024 0020 0056 001 000 000 0007000600050004 20 02361 0281 0220 0172 01350106 0084 0055 0053 0042 0033 0026 0021 001 0054 0011 0009 7 000 000 0004 0003 27 0347 0268 0207 0161 0125 0098 0076 0060 0047 0031 0029 0023 009 00 01 000 000 000 0005 0004 0.003 0002 28 01330255 0195015001 0090 0069 0054 0042 0033 0025 0020 0016 0012 000 0000 0000 0005 004 000 000 0002 29 0221024) 0150110807 000 000 0048 0037 0029 0022 001 00M 0011 000 000 0005 004 00000020002002 20 030 0231 01 01 0.0990075 0057 004 0.033 0026 0020 0015 0002 0.009 000 0005 004 000 000 000 000 000 40 0208050097 0067 004500120022 00S ODOR 0005 0000 0001 0002 001 0001 0001 0000 0000 0000 0000 0000 FADIES EXHIBIT 70-2 Present Value of an Annully of 51 in Arrears wiods 45 SX 10% th os 11 19% % 1 20% 21% 22 23 24 25 1 0.962 0952 0943 0935 0.926 0912 0.909 0901 0193 ONS OR77 0.870 0862 0855 0847 084 083 0826 0.20 0.20 0.806 0800 2 1886 1859 1833 1808 1789 1759 1736 170 1690 1668 1667 1626 1605 1585 1566 157 158 1509 1492 147 1457 1440 3 2.775 2723 2673 2624 2577 2531 2487 2444 2.402 2361 222 223 2246 2210 204 20 206 2074 2012 2011 1981 1952 4 3630354634653387 312 32403170 302 3017 2974 294 2855 270 2713 2650 2639 253 2540 241 248 2.104 22 5 4.452 432942124100 19933890 3.791 1696 3G05 3517 341 3.052 1274 3199 31273058 2991 2926 2864 2.803 2745 2689 6 5242 5076490 4767 46234486 4355 421 411 3.9983380 3784 365 3589 340 3410 126 1245 3167 3092 3020 2051 7 6002 5.786 5562 5.389 5206 500) 4068 4712 4564 4423 4288 404099 3922 3.812 37063605 3.508 3416 3327 3212 3161 67336463 6210 5971 5747 5535 5335 516 4968 4799 4639 4487 434 4207 4078 3954 3.817 3726 369 3518 3.1 1329 9 74357108 6 802 6515 6247 5 995 5759 5537 5328 5132 496 472 4607 4451 4301 436) 4031 2905 3786 367 354 140). 10 8111 7722 7360 7024 6710 6418 6855.889 5650 5.426 5.216 5019 4830 4650 4404 4399 4192 1054 3923 799 362 3571 11 760 30678877499709 680564956207 5938 5.687 5453 52 5029 48364656 4486 4327 47 4035 3902 373 3656 12 9358.86) 8.354 7943 7536 7161 6 6.492 694 5918 5.660 541 5197 4088 479) 4611 4499 1278 4127 3985 3151 3725 9.986 98853 8.758 7904 748771016750 6424 6122 512 5583 52 5118 4910 4715 4513 432 1201 1053 3912 1700 11 10563 9.89992958245 24778673676912 6628 6302 6002 572 518 5229 5008 4102 4611 442 4265 4108 362 1124 15 1118 10 3809712 9.108 8559 8061 7606 7191 6811 6462 6M2 5.847 5575 5324 5092 476 46754489 43154150 4001 3859 11652 10838 10.106 947 8851 8.30 7824 737 6974 6604 6265 5.954 5668 5005 5362 4938 4730 4536 4357 418 4033 3887 12.166 112740477 976) 9122 854 8022 754971206.729 6.373 60175749 5.475 5222 4900 4775 4596 4.791 4219 4059 3910 18 12.659 11690x828 20059.372 8.756 8201 72027250 G840 6467 6128 5818 5.534 5.2735033 48124608 4499424340803928 19 01312065 11158 033696049508365 789 7366 6938 6.550 618 5.877 5581 5316 5070 483 4005 42 4260 4097 392 20 13590 12.462 1170 594 9.8189129 8.5M 7963 7469 7025 6623 6259 5.929 5628 5.353 51014270 4657 446042794113954 21 M029 12821 11764835 017 9292 8649 80757562 71026687 6312 5973 5665 5384 527 484 4675 1676 42924213569 22 M451 3163 12042 1061 201 9442 87728.1767645 7070 6740 6.359 5011 5.6 5410 594909 1690 4488 43024103970 23 M857 13.489 12.303 11.272 10371 95808883 8266 718 72306712 6.39960M 57235402 5367 4.925 470) 449 41373976 24 15 247 13 799 0550 11469 529 9707 89858348 7784 728368956434 607) 5746 5.451 5182 497 471 4507 438 433981 25 15622 1.094 12763 1654 10675 9.8239077 8422784373306873 644 509 5766 5.467 5195498 4721 454 422 42395 26 15983 M.375 0.000 1826 1081099299361 848 7896 7372 6906 6491 611 576 5480 5205 4 956 4728 4520 428 4151 3988 27 16.330 14643 121111987 10.905 027 0237 850 7943 7409 6935 6.544 606 5.798 5.492 5205 4964 47344524 433241543990 28 16693 14894 406 137 11051 116 9307 8602 7984 7441 6961 6534 6152580 5502 522 4970 473945284335 01573992 29 16.984 1541 3591 12278 11158 98 9370 8650 8022 7470 6983 6551 6166 5820 5510 5220 4975004531433741591594 30 17292 15372 3765 12.409 11258 29427 8594 8055 74967000 6566675829 5511 5275 4975 476 454 439 03995 40 19793 171595046 1332 11925575797798951 824 7634 78056642 6233 5871 5541 5258 4997 4750 4544 566 2999 Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req4 Reg 5 Req 6A Reg 6B Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index Reg 1 Req 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 6B Calculate the simple rate of return for each product. (Round your answers to 1 decimal place i.e. 0.123 should be as 12.3%) Product A Product B %% Simple rate of return Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Req 6B 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 Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 6B Based on the simple rate of return, Lou Barlow would likely: O Accept Product A Accept Product B Reject both products