Product A Initial investment: Cost of equipment (zero salvage value) $ 366,800 Product B $ 530,000...

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Product A Initial investment: Cost of equipment (zero salvage value) $ 366,800 Product B $ 530,000 Annual revenues and costs: Sales revenues $ 400,000 $ 510,000 $ 180,000 $ 250,000 $ 74,000 $ 106,000 Fixed out-of-pocket operating costs $ 85,000 $ 72,000 Variable expenses Depreciation expense The company's discount rate is 19%. Click here to view Exhibit 12B-1 and Exhibit 12B-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. 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 Req 2 Req 3 Req 4 Req 5 Req 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Payback period earch Product A Product B years years C Ca JO Req 2 > www Prev 1 of 1 Next Product A Initial investment: Cost of equipment (zero salvage value) $ 366,800 Product B $ 530,000 Annual revenues and costs: Sales revenues $ 400,000 $ 510,000 $ 180,000 $ 250,000 $ 74,000 $ 106,000 Fixed out-of-pocket operating costs $ 85,000 $ 72,000 Variable expenses Depreciation expense The company's discount rate is 19%. Click here to view Exhibit 12B-1 and Exhibit 12B-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. 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 Req 2 Req 3 Req 4 Req 5 Req 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Payback period earch Product A Product B years years C Ca JO Req 2 > www Prev 1 of 1 Next