4 points 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 (RON, which has exceeded 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Product Products Initial investment: cont of equipment (Roro salvage value) $ 370,000 $570,000 Annual revenues and contar Sales revenues $ 400,000 $ 480,000 Variable expenses $ 180,000 $ 214,000 Depreciation expense $ 74,000 $ 114,000 Fixed out-of-pocket operating costs $ 88,000 $68,000 Book Reference The company's discount rate is 20% Click here to view Exhibit 143-1 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 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. Req1 Reg 2 Req3 Req 4 Req 5 Req 6A Req 6B Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Payback period years years Req 1 Reg 2 Req3 Req 4 Reg 5 Req6A Req 6B Calculate the net present value for each product. (Round your final answers to the nearest whole dollar amount.) Product A Net present value Product B Reg 1 Reg 2 Req3 Req 4 Reg 5 Req 6A Req 6B Calculate the internal rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Product A Product B Internal rate of return % % Reg 1 Reg 2 Req3 Reg 4 Reg 5 Req 6A Req 6B Calculate the simple rate of return for each product. (Round your percentage answers to 1 decimal place i.e. 0.123 should be considered as 12.3%.) Product A Product B Simple rate of return Req1 Reg 2 Req 3 Reg 4 Reg 5 Req 6A Req 6B For each measure, identify whether Product A or Product B is preferred. Net Present Profitability Payback Internal Rate Simple Rate of Value Index Period of Return Return