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. 10 points Product A Product $ 380,000 $575,000 Sloped Initial Investments Cost of equipment (zera salvage value) Annual revenues and costs Sales revenues VarLable expenses Depreciation expense Fixed out-of-pocket operating costs $410,000 $ 490,000 $ 186,000 $ 210,000 $ 76,000 115,000 $ 19,000 5 70,000 Book Hint The company's discount rate is 20% 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 profitability index for each product 6a. For each measure identify whether Product A or Product B is preferred Pin Berences Complete this question by entering your answers in the tabs below. Reg! Hea 2 RGB Reg4 Reg 6A Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product Payback period Product B Yews years Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Req4 Reg 6A Product Using Excel, calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product B Net present value