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 19% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Product B Initial investments Cost of equipment (zero salvage valve) $ 180,000 $ 390,000 Annual revenues and costs Sales revenues $ 270,000 $360,000 Variable expenses $ 130,000 $ 180,000 Depreciation expense $.44,000 $. 36,000 Fixed out-of-pocket operating costs $ 30,000 $ 60,000 The company's discount rate is 16% Click here to view ExNb12B 1 and Exhibit:28. 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 profitability index for each product 5. Calculate the simple rate of return for each product 6a. For each measure, Identity whether Product A or Product is preferred. 6b Based on the simple rate of return, which of the two products should tou's division accept? Complete this question by entering your answers in the tabs below. 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 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, which of the two products should Lou's divi Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Reg 5 Req 6A Calculate the payback period for each product. (Round your answers to 2 decimal plan Product B Product A years Payback period years Fixed out-of-pocket operating The company's discount rate is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate dis 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 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, which of the two products should Lou's dis Complete this question by entering your answers in the tabs below. Reg 5 Req 6A Read Req 1 Reg 2 Req3 Calculate the net present value for each product. (Round your final answers to the Product A Product B Net present value Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate 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 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, which of the two products should Lou's Complete this question by entering your answers in the tabs below. Red 3 Req 1 Reg 2 Req 4 Reg 6 Reg 5 Calculate the internal rate of return for each product. (Round your percentage a considered as 12.3%.) Product A Product B Internal rate of return % % $ 80,000 Fixed out-of-pocket operating costs The company's discount rate is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate dis 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 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, which of the two products should Lou's divi Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Req3 Reg 4 Reg 5 Req 6A Calculate the simple rate of return for each product. (Round your percentage answer considered as 12.3%.) Product B Product A % Simple rate of return % Fixed out-of-pocket operating costs $ 80,000 $ 60 The company's discount rate is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2. to determine the appropriate disco 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 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, which of the two products should Lou's divisi. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3 Req 4 Req 5 Req 6A For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Value Index Payback Period Internal Rate Simple Rate of of Return Return