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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Products $ 260, ese $ 470, ee Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310, eee $ 144,00 $ 52,000 $ 76,000 $ 410,000 $ 194, eee $ 94, eee $ 58,000 The company's discount rate is 18% Click here to view Exhibit 138.1 and Exhibit 13B-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 project 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, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Reg 4 Reg 5 Req 6A Req 68 Reg 1 Reg 2 Reg 3 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A years Product B years Payback period Reg 2 > 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product B $ 260, eee $ 470, eee Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310,00 $ 144,600 $ 52,000 $ 76,000 $410,eee $ 194, eee $ 94,000 $ 58,eee The company's discount rate is 18% Click here to view Exhibit 138.1 and Exhibit 13B-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 project profitability index for each product. 5. Calculate the simple rate of return for each product. 6o. For each measure, identify whether Product A or Product B is preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req3 Reg 4 Reg 5 Reg 6A Reg 68 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 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 20% 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) $ 260,00 $ 470,000 Annual revenues and costs Sales revenues $ 310,000 $ 410,000 Variable expenses $ 144,000 $ 194,000 Depreciation expense $ 52,000 94,000 Fixed out-of-pocket operating costs $ 76,000 $ 58,000 The company's discount rate is 18% Click here to view Exhibit 138.1 and Exhibit:13B-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 project profitability Index for each product. 5. Calculate the simple rate of return for each product. 6o. For each measure, identify whether Product A or Product Bis preferred. 6b. Based on the simple rate of return, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Reg 1 Req2 Req3 Reg 4 Reg 5 Req GA Req 68 Calculate the internal rate of return for each product. (Round your answers to 1 decimal place le. 0.123 should be considered as 12.3%) Product A Product B Internal rate of return 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Products $ 260,000 $ 470, ece Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs! Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310,000 $ 144,000 $ 52,000 $ 75, eee $410,000 $ 194, eee $ 94,000 $ 58,00 The company's discount rate is 18% Click here to view Exhibit 138-1 and Exhibit 138-2. 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 project 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. 66. Based on the simple rate of return, Lou Barlow would likely Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6 Reg 68 Calculate the project profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Project profitability index Req3 Reg 5 > 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Producto $ 260,000 $ 470,000 Initial investment cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310,000 $ 144,000 $ 52,000 $ 76,000 $ 410,000 $ 194,000 $ 94,000 $ 58,000 The company's discount rate is 18% Click here to view Exhibit.138.1 and Exhibit.13B-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 project 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, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Reg 4 ReG GA Rega Reg 2 Req3 Reg 5 Reg 68 Calculate the simple rate of return for each product. (Round your answers to 1 decimal place le. 0.123 should be considered as 12.3%) Product A Products Simple rate of return 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product $ 260,000 $ 470,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310,000 $ 144,000 $ 52,000 $76,000 $410,000 $ 194,000 $ 94,000 $ 58,000 The company's discount rate is 18% Click here to view Exhibit 138-1 and Exhibit.13B-2. to determine the appropriate discount foctor 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 project 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, Bosed on the simple rate of return, Lou Borlow would likely Complete this question by entering your answers in the tabs below. Req 6A Reqs Reg 1 Reg 2 Reg 4 Reg 60 Reg 3 For each measure, identify whether Product A or Product B is preferred Net Present Profitability Payback Internal Rate Simple Rate of Value Index Period of Return Return 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 20% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product A Product $ 260, cee Initial investment: Cost of equipment (tero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $ 310,000 $ 144,000 $ 52,000 $ 76,000 $ 47,000 $410,000 $ 194,000 $ 94,000 $ 58,00 The company's discount rate is 18% Click here to view Exhibit 13B-1 and Exhibit 13B-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 project 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, Lou Barlow would likely: Complete this question by entering your answers in the tabs below. Req 2 Reg 1 Reg 3 Reg 4 Req5 Req 6A Reg 68 Based on the simple rate of return, Lou Barlow would likely: Accept Product A O Accept Product B Reject both products