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: Initial investments Product Products Cont of equipment (zero walvage value) $340,000 $540,000 Annual revenues and costs Sales revenues $ 380,000 $ 460,000 Variable expenses $ 170,000 $ 206,000 Depreciation expense $ 68,000 $ 108,000 Fixed out-of-pocket operating costs $ 86,000 $ 66,000 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, Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Req 4 Req 6A Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req3 Req 4 Req 6A Using Excel, calculate the net present value for each product. (Round your final answ Product A Product B Net present value Req 1 Reg 2 Rej 3 Req 4 Req 6A Using Excel, calculate the internal rate of return for each product. (Round your perc 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. Reg 1 Req 2 Req3 REG 4 Req 6A Calculate the profitability Index for each product. (Round your answers to 2 dec Product A Product B Profitability index by entering your answers in the tabs below. Reg 1 Req 2 Req 3 Req 4 Reg 6A For each measure, identify whether Product A or Product B is preferred. Net Present Value Profitability Index Payback Period Internal Rate of Return