Question: Please help me solve this question. This is an entire question. I need help solving it. Lou Barlow, a divisional manager for Sage Company, has

Please help me solve this question. This is an entire question. I need help solving it.

Please help me solve this question. This is an entire question. I

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 23% 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 $260,000 $ 480,000 value) Annual revenues and costs Sales revenues $330,000 $ 430,000 Variable expenses $152,000 $ 202,000 Depreciation expense $ 52,000 $ 96,000 Fixed out-of-pocket operating costs $ 78,000 $ 58,000 The company's discount rate is 14%. Use Excel or a financial calculator to solve any time value of money problems. 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. (Round answers to the nearest dollar.) Product A Product B Net present value 3. Calculate the project profitability index for each product. (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. i.e. 0.1234 should be considered as 12.3%.) Product A Product B Simple rate of return % % 5a. For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Payback Value Index Period 5b. Based on the simple rate of return, Lou Barlow would likely: Accept Product A Accept Product B Reject both products

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