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. 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) $ 250,000 $ 460,000 Annual revenues and costs: Sales revenues $ 300,000 $ 400,000 Variable expenses $ 135,000 $ 190,000 Depreciation expense $ 50,000 $ 92,00 Fixed out-of-pocket operating costs $ 75,000 $ 55,000 The company's discount rate is 18%, Ignore income taxes. Note that Excel or a financial calculator must be used to calculate items 2.4. 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. 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 4 Reg 6A Reg 3 Reg 2 Req 1 Calculate the payback period for each product. (Round your answers to 2 decimal places) Product A Product B years years Payback period H Reg 2 > Next > 1 of 6 !!! Prev 04:19:41 Skipped UJU ve used to calculate items 2.4 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. 6a. For each measure, identify whether Product A or Product B is preferred. eBook Complete this question by entering your answers in the tabs below. Print Req1 Reg 2 Reg 3 Reg 4 Reg 6 References Calculate the net present value for each product. Product A Product B Net present value Next > 1 of 6 Prev MC Graw Hill Educa HOMES UUMLIDIUS 18 04:19:34 Skipped Ignore income taxes. Note that Excel or a financial calculator must be used to calculate items 2-4. 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. 6a. For each measure, identify whether Product A or Product B is preferred. eBook Complete this question by entering your answers in the tabs below. Print Reg 1 Reg 2 Reg 3 Reg 4 Reg 6A References Calculate the internal rate of return for each product. (Round percentage answers to 1 decimal place) Product A Product B Internal rate of return % % Prev Next > 1 of 6 Mc Graw Hill Education I ULE UN Depreciation expense Fixed out-of-pocket operating costs $ 135,000 $ 50.000 $ 75,00 $ 190,00 $92,00 $ 55,000 10 points The company's discount rate is 18% Ignore income taxes. Note that Excel or a financial calculator must be used to calculate items 2-4, 04-10-26 Skipped 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 6a. For each measure, identify whether Product A or Product B is preferred eBook Complete this question by entering your answers in the tabs below. Print Reg 1 Reg 2 Reg 3 Rep 4 Reg GA References Calculate the project profitability index for each product. (Round your answers to 2 decimal places) Product A Product B Project profitability Index Mc Graw HII 1 - Variable expenses Depreciation expense Fixed out-of-pocket operating costs 5135.000 550, $75.00 $ 190,00 $ 92.00 $ 55,00 10 points The company's discount rate is 18% Ignore Income taxes. Note that Excel or a financial calculator must be used to calculate Hers 2-4 0413 Skipped 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 6a. For each measure, identify whether Product A or Product B is preferred. eBook Complete this question by entering your answers in the tabs below. Print Reg 1 Reg 2 Reg 3 Reg 4 REGEA References For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Payback Internal Rate Value Index Period of Return Mc Graw