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 A Product B Initial investment: Cost of equipment (zero salvage value) $ 296,666 $ 496,666 Annual revenues and costs: Sales revenues $ 346,666 $ til-46,666 Variable expenses 35 154,666 $ 266,666 Depreciation expense $ 53,666 $ 93,666 Fixed outof-pocket operating costs $ 739,666 $ 59,666 The company's discount rate is 15%. Required (Use Excel for 2 - 4}: 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 protability index for each product. 6a. For each measure, identifyr whether Product A or Product B is preferred. Complete this question by entering your answers in the tabs below. Red 1 Red 2 Red 3 Red 4 Req 6A Calculate the payback period for each product. (Round your answers to 2 decimal places.) --- 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 net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Product B Net present value 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 place i.e. 0.123 should be considered as 12.3%.) Product A Product B Internal rate of return % % 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.) Product A Product B Profitability index 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 Profitability Payback Internal Rate Value Index Period of Return