Help Save 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 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. 66. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Req1 Reg 2 Reg 3 Reg 4 Reqs Req 6A Req 6B 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 6b Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Regal Reg 4 Req 5 Req 6A Req 6B 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 B Product A 23.01% Internal rate of return 22.01% points Complete this question by entering your answers in the tabs below. etlook Reg 6A Reg 6B Reg 2 Reg 4 Reg 5 Reg 3 Rodd Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product Product Payback period 2.80 years 290 years R Roo Reg 2 > Sales revenues 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 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Products Initial investment: Cost of equipment (zero salvage value) $ 350,000 $ 550.000 Annual revenues and costs: $ 390,000 $ 470,000 Variable expenses $ 178,000 $ 210,000 Depreciation expense $ 70, $110,000 Fixed out-of-pocket operating costs $ 87,000 $ 67,000 The company's discount rate is 20% Click here to view Exhibit 148_1 and Exhibit 1482. 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 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, which of the two products should Lou's division accept