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last three years. He has computed the cost and revenue estimates for each product as follows: Product Products $ 310,000 $ 510,000 Initial investments Cost

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last three years. He has computed the cost and revenue estimates for each product as follows: Product Products $ 310,000 $ 510,000 Initial investments Cost of equipment (zero salvage value) Annual revenues and costs sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 360.000 $164,000 $ 62,000 $81,000 $ 460,000 $ 214,000 $ 102,000 $ 65,000 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. 6. For each measure, identify whether Product A or Product B is preferred. 6. Based on the simple rate of return, Lou Barlow would likely Depreciation expense Fixed out-of-pocket operating costs $ 62,000 $ 81,000 $ 102,000 $ 65,000 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. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B

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