Question: just req. 3 & 4. please show calculations Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of

just req. 3 & 4. please show calculations  just req. 3 & 4. please show calculations 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

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 25% 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) $340,000 5 525,000 Annual revenues and costs: Sales revenues $ 380,000 $ 480,000 Variable expenses $ 172,000 $ 225,000 Depreciation expense $ 68,000 $ 105,000 Fixed out-of-pocket operating costs $3,000 $ 66,000 The company's discount rate is 17% Click here to view Exhibit 148-1 and Exhibit 14B-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 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, 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 Reg 6A Reg 6B Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place .e. 0.123 should be considered as 12.3%.) Product B Product A % Internal rate of return Complete this question by entering your answers in the tabs below. Reg 1 Req 2 Reg 3 Reg 4 Reg 5 Reg 6A Req 6B Calculate the profitability index for each product. (Round your answers to 2 decimal places.) Product A Product B Profitability index

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