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the work for this problem is confusing me, please help Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell

the work for this problem is confusing me, please help
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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: Product A Products Initial investment cost of equipment (zero salvage value) $ 380,000 $575,000 Annual revenues and costs: Sales revenues $ 410,000 $ 490,000 Variable expenses $ 136,000 $ 210,000 Depreciation expense $ 76,000 $ 115,000 Fixed out-of-pocket operating costs $ 99,000 $70,000 The company's discount rate is 20% Click here to view lixhibit 148.1 and Exhibit 148-2. to determine the appropriate discount factor using tables, Required: 1. Calculate the payback period for each product 2. Calculate the net present value for 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 is preferred 6b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg2 Rega Reg4 Reqs Reg 6 Reg 6 Calculate the payback period for each product. (Round your answers to 2 decimal places) Product A Product B Sa. For each measure, identify whether Product A or Product B is preferred. Sb. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Peq3 Reg 4 Reg 5 Reg 6A Reg 68 Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Products 2.85 years Payback period 2.81 years Reg 2 > 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 division accept? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3 Reg 4 Reg 5 Reg 6A Reg 6B 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 5. Calculate the simple rate of return for each product. 6a. For each measure, identify whether Product A or Product is preferred. 6b. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg Reg 1 Reg 2 ** Reg 4 Reqs Reg 6A Reg 68 Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place le. 0.123 should be considered as 12.3%) Product A Product B Internal rate of retum Reg 2 Reg4 > 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 division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Ref 4 Reg 5 Reg 6 Reg 68 Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Profitability index (Reg 3 Reg 5 > bb. Based on the simple rate of return, which of the two products should Lou's division accept? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 3 Reg 4 Reg 5 Req 6A Reg 68 Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place le. 0.123 should be considered as 12.3%.) Product B Product A % Simple rate of return

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