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: 20 points Product A Product B $ 380,000 $575,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs eBook $ 410,000 $ 186,800 16,000 $ 89,800 $ 499,000 $ 218,000 115.000 $ 70,000 5 Print The company's discount rate is 20%. References Click here to view Exhibit 13B-1 and Exhibit 130-2. to determine the appropriate discount factor using tables. reach product 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: ou 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 years Product B years Payback period Comprehensive Problems 10% Grade, Spring 2020 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 A Product B Dints $ 380,000 $575,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 410,000 $ 186,090 $ 76,098 $ 89,000 $ 490,000 $ 218,000 $ 115,000 $ 70,000 eBook Print The company's discount rate is 20%. Click here to view Exhibit 138.1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. References 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 Req3 Req 4 Req 5 Req 5A Req 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product Product B Net present value 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 A Product B 20 oints $ 380,000 $575,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 410,000 $ 186,800 $ 76,099 $ 89,000 $ 490,000 $ 218,000 $ 115,000 $ 70,000 eBook Print The company's discount rate is 20% Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor using tables. References 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 clerren Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Recho Reg 4 Req 5 Req 6A Req 68 Calculate the internal 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 Internal rate of return % 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 Product B 20 points $ 380,868 $ 575,089 Initial investiment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 410,eee $ 186,800 76,880 89, Bee $ 499,999 $ 218,000 $ 115,000 $ 70,000 ebook The company's discount rate is 20%. Click here to view Exhibit 138.1 and Exhibit 138-2. to determine the appropriate discount factor using tables. References 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 Rep 4 Reg 5 Reg 6A Req 6B Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product Product B Project profitability index araw