9 10 points ferences Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and selt one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (RO), which has exceeded 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows: Initial investment Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs The company's discount rate is 20% Product A Product 5:382,500 $575,000 $410,000 106,000 $76,000 $ 89,000 $490,000 1218,008) 115,000 5 70,000 Click here to view Exhibit 128-1 and Exhibit 120 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 A Calculate the profitability index for each product 5. Calculate the simple rate of return for each product 6. 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. 2 Reg Reg Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A Product B Reg Check my work