Can you help me with part 3 on Internal Rate of Return?

1. Award: 13 out of 15.00 points Show correct answer Problem 8-23 Comprehensive Problem (LO8-1, LO8-2, LO8-3, LO8-5, LO8-6] 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 $260.000 $ 480,000 Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket operating costs $330.000 $152.000 $ 52.000 $ 78.000 S 430.000 $ 202.000 $ 98.000 $ 58,000 The company's discount rate is 14% Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. (Round your answers to 2 decimal places.) Product A A 2.60 years Product B 2.82 years Payback period 2. Calculate the net present value for each product. (Round discount factor(s) to 3 decimal places.) Product A Product B IS 83.200 s 103,440 Net present value 3. Calculate the internal rate of retum for each product. (Round percentage answers to 1 decimal place. i.e. 0.1234 should be considered as 12.3% and round discount factor(s) to 3 decimal places.) Product A A Product B 22.7 % Internal rate of return 26.7 %