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 25% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs The company's discount rate is 17% Required (Use Excel for 2-4): 1. Calculate the payback period for product. 2. Calculate the net present value for each product. Product A Product B $340,000 $525,000 $480,000 $225,000 $380,000 $172,000 $ 68,000 $ 105,000 $ 83,000 $ 66,000 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. is tobe below. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 6A Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product B Payback period Product A years years < Req 1 Req 2 > 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 Red 2 Req 3 Req 4 Req 6A Using Excel, 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 < Req 1 Req 3 > Poduct A or Product B is preferred. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3. Req 4 Req 6A Using Excel, calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal plac 0.123 should be considered as 12.3%.) Product A Product B Internal rate of return % < Req 2 Req 4 > 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 Req 2 Req 3. Req 4 Req 6A Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Profitability index Product A Product B Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 6A For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return < Req 4