Product A Product B Initial investment Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $370,000 $570,000 $400,000 $480,000 $182,000 $214,000 $ 74,000 $114,000 $ 88,000 68,000 The company's discount rate is 20%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years 2 Calculate the net present value for each product. (Use the appropriate table to determine the discount factor(s).) Product A Product B Net present value 3. Calculate the project profitability index for each product. (Use the appropriate table to determine the discount factor(s). Round your answers to 2 decimal places.) Product A Product B Project profitability index 4. Calculate the simple rate of return for each product. (Round percentage answer to 1 decimal place. ie, 0.1234 should be considered as 12.3% and use the appropriate table to determine the discount factor(s).) Product A Product B Simple rate of return 5a. For each measure, identify whether Product A or Product B is preferred. Net Present ProfitabilityPayback Period Value Index 5b. Based on the simple rate of return, Lou Barlow would likely: O Accept Product A O Accept Product B O Reject both products